Dubai court orders woman to pay Dh4.3 million over fake crypto deal

A Dubai court has ordered a woman to pay Dh4.3 million in compensation after she was found guilty of defrauding an investor of $1 million through a fake cryptocurrency deal, carried out in collusion with her fugitive husband.

The case dates back to when the investor met a man who claimed to own an investment company and expressed interest in financing his business. The man insisted on what he described as “proof of financial solvency” before signing any contracts and arranged a meeting in Dubai to complete the verification process.

However, the man failed to attend the meeting and sent his wife instead. During the meeting, the woman executed a carefully planned scam, distracting the investor and switching a box containing a digital wallet device holding cryptocurrency access keys with an identical box she had prepared in advance. The switch enabled her to seize the digital assets and transfer them to other parties.

Dubai authorities launched an investigation, and the case was registered as a criminal matter. The Dubai Misdemeanours and Infractions Court convicted the woman of theft, sentencing her to two months in jail, fining her about Dh1.8 million — the value of the stolen assets at the time of the crime — and ordering her deportation.

The Court of Appeal upheld the ruling, making it final.

Following the criminal conviction, the investor filed a civil lawsuit seeking full compensation for his losses, arguing that the value of the stolen cryptocurrencies had risen significantly during the period he was deprived of them.

After hearing the case, the civil court ordered the defendant to pay Dh4.3 million in compensation for losses and lost profits, along with legal interest of 5 per cent until full payment. The court ruled that digital assets are considered property under the law and that compensation should reflect their market value, including any appreciation.