Two Jailed Over Fake Crypto Scheme That Defrauded Investor of Dhs1.098M

Two individuals have been convicted of orchestrating a fraudulent cryptocurrency scheme that duped an investor out of Dhs1.098 million. The Dubai Misdemeanours Court sentenced one Asian defendant to three months in prison followed by deportation, while the second accused --tried in absentia -- received the same sentence. Both were also jointly fined Dhs1.098 million.

 

According to case records, the defendants enticed a European investor into a fictitious digital-currency venture promising substantial profits. The incident, reported in November last year, began when the investor approached police claiming he had been deceived into purchasing digital currency at a rate allegedly below the global trading price.

 

The victim explained that the first defendant convinced him that the second defendant -- currently at large -- was actively trading cryptocurrency on a reputable platform and could sell coins at discounted rates. Believing the offer to be legitimate, the investor agreed to meet both men at a hotel in the Al Mankhool area.

 

During the meeting, the second defendant displayed what appeared to be links to a functioning digital wallet. After agreeing on the transaction price, the investor handed over Dhs1.098 million. The second defendant then stated that the cash needed to be verified using a money-counting machine located within the hotel.

 

The victim remained in the lounge with the first defendant while the second supposedly went to count the money. When he failed to return, it became clear he had absconded with the funds. Police were promptly notified, and the first defendant was subsequently arrested.

 

During questioning, the first defendant denied any affiliation with his accomplice. However, investigative findings revealed that both had jointly devised a calculated plan to deceive the investor and appropriate his money. Evidence showed that the second defendant deliberately left the premises before police arrived.

The court determined that the pair had intentionally misled the investor into believing they possessed genuine digital currency, enabling them to unlawfully obtain his funds. It further found that the second defendant’s claim about verifying the cash was merely a pretext to facilitate his escape, while the first defendant remained behind to distract the victim and delay suspicion until the theft was complete.

 

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