Court Jails Woman, Orders Deportation Over Dh3M Crypto Wallet Swap Theft

A woman has been sentenced to two months in jail and ordered to be deported from the UAE after being convicted of stealing cryptocurrency worth more than Dh3 million by covertly swapping a hardware wallet during a business meeting in Dubai.

Court records show the defendant discreetly replaced a legitimate cryptocurrency wallet containing private access keys with an identical device she had prepared in advance. The switch enabled the digital assets to be transferred out of the investor’s control without his immediate knowledge.

The case dates back to an introduction between the investor and a man who claimed to run an investment company and expressed interest in financing a business venture. Before finalising any agreement, the man asked the investor to provide what he described as proof of financial capability by demonstrating ownership of significant cryptocurrency holdings.

A verification meeting was arranged in Dubai, but the man failed to attend, citing last-minute reasons, and instead sent his wife to represent him. Investigators said it was during this meeting that the woman carried out the wallet swap while handling the verification process.

The investor later discovered that his cryptocurrency had been transferred to other parties, prompting a criminal investigation. The case was referred to the Dubai Misdemeanours and Infractions Court, which convicted the woman of theft. In addition to the jail term, the court fined her the value of the stolen assets at the time of the offence and ordered her deportation. The Court of Appeal upheld the ruling.

The investor subsequently filed a civil lawsuit seeking compensation for financial losses and lost profits, arguing that the value of the cryptocurrency had risen after the theft. The civil court ruled in his favour, ordering the defendant to pay Dh4.3 million in compensation, along with 5 per cent annual legal interest until full settlement. The court affirmed that digital currencies are recognised as financial property and are protected under the law.

Court documents identified the woman’s husband as a key participant in the scheme. He remains at large.

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