Fraudster Ordered to Repay Dh1.55M to Asian Couple Duped in Crypto Scam

A Dubai court has ordered an Arab national to return Dh1.55 million to an Asian investor and his wife, who were defrauded in a cryptocurrency investment scam, reaffirming the judiciary’s firm stance against financial deception and unregulated digital schemes.

 

According to court documents, the accused persuaded the couple to invest in a cryptocurrency deal, promising lucrative returns. Convinced by the proposal, the victims handed over Dh1.5 million at the fraudster’s office to purchase 400,000 units of digital currency.

 

The man assured them that the coins would be transferred to the investor’s electronic wallet. However, no transfer occurred. When questioned about the delay, he gave evasive excuses and eventually stopped responding.

 

The couple reported the incident to the police. Investigations confirmed that the accused had received the money but failed to carry out the cryptocurrency purchase. He was prosecuted for fraudulent appropriation of funds and fined Dh10,000. While the criminal court addressed the element of intent, it did not cover the civil recovery of funds.

 

The case later reached the Civil, Commercial, and Administrative Court, where the investor sought repayment of Dh1.5 million along with Dh100,000 in damages for financial losses, missed investment opportunities, and legal expenses.

 

The defence argued that the civil case should be suspended pending appeal, claiming the accused did not misappropriate the funds and referencing his earlier acquittal.

 

However, the court ruled in favour of the couple, finding that the accused had indeed received the money for purchasing cryptocurrency but failed to fulfil the transaction. Judges clarified that the criminal acquittal negated intent, not the receipt of funds.
 

The court held that transferring the money to another party without completing the purchase constituted unjust enrichment under Article 318 of the UAE Civil Transactions Law, which mandates restitution of funds taken without legitimate cause.
 

In addition to ordering repayment of Dh1.5 million, the court awarded Dh50,000 in compensation for material and moral damages, bringing the total to Dh1.55 million.
 

Legal experts cautioned that the ruling serves as a reminder for investors to verify digital investment opportunities and report suspected fraud promptly to avoid similar losses.

 

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