UAE court orders broker to repay $124,000 after crypto losses

Dubai: An Al Ain civil court has ordered a trading broker to repay $124,361 to a young investor after finding he breached their agreement by using high-risk strategies and oversized leveraged trades that wiped out the account in a short period.

The Civil, Commercial and Administrative Court ruled to terminate the trading arrangement and return the losses, and also awarded the claimant Dh10,000 in moral damages, plus costs and legal fees.

According to court documents, the investor deposited about $135,501 in digital currency (USDT) into a trading platform account and gave the broker access to manage the portfolio in return for 30 per cent of profits. Messages between the parties set a target return of 1–5 per cent per day and a stop-loss limit of 8 per cent per trade, Emarat Al Youm reported.

A court-appointed expert found the broker used a high-risk, unprofessional approach, exceeded declared risk limits and employed margin trading beyond the invested capital. The report said use of a high-fee execution method generated more than $46,000 in platform charges within days, accelerating losses.

The court said contract breaches justify termination and restitution under civil transactions law.