Dubai Police arrest six suspects in Dh2.6 million cryptocurrency scam

Dubai Police have arrested six suspects accused of defrauding a victim of Dh2.6 million in a cryptocurrency scam involving an unlicensed exchange, after tracing and securing the stolen digital assets.

The fraud involved Dh2 million in cash and Dh600,000 worth of cryptocurrencies. The suspects allegedly took the money and disappeared after persuading the victim to transfer his digital assets into decentralised wallets designed to conceal their owners' identities.

According to Dubai Police, the victim was looking to buy cryptocurrency using a substantial amount of cash when he approached an unlicensed currency exchange. There, he met several members of the gang and agreed to carry out the transaction.

After the victim transferred his virtual assets into the digital wallets, the suspects allegedly seized the cash and fled. They had deliberately exploited the complex nature of cryptocurrency transactions and the difficulty of identifying wallet owners, believing the movement of funds between wallets would help them evade detection.

Following the victim's report, specialised teams from Dubai Police's General Department of Criminal Investigation launched an investigation on two parallel fronts.

The first involved field operations and evidence gathering to identify, locate and arrest the suspects. The second focused on advanced technical analysis to track the stolen virtual assets and map their movement across the blockchain as they were transferred between different digital wallets.

Despite the complexity of the case and the speed at which the cryptocurrencies were moved between wallets, investigators identified and arrested all six suspects in record time, Dubai Police said.

Specialised experts also successfully traced and secured the stolen virtual assets before they could be transferred to additional wallets or otherwise disposed of.

Dubai Police urged residents to avoid cryptocurrency transactions through unknown brokers and unlicensed exchanges, warning that dealing with unauthorised providers can expose them to fraud and financial losses.

The force stressed that checking the legal status of virtual asset service providers before entering into any transaction is an essential safeguard.

Residents were also warned against offers promising unusually high returns within a short period, which could be used to lure victims into fraudulent investment and trading schemes.

Dubai Police advised the public to avoid cash-based cryptocurrency deals with unverified individuals or unlicensed exchanges and to conduct transactions only through officially recognised entities.

Dubai Police reaffirmed their commitment to strengthening their technical and technological capabilities to tackle crimes involving virtual assets.

The force said it uses digital analysis and technical tracking tools alongside field searches and conventional investigative methods to uncover emerging forms of crime and pursue those responsible.

It also highlighted the importance of reporting suspicious financial activity without delay, as prompt notification can help investigators trace and secure virtual assets before criminals move them through other wallets.

Residents were urged to report suspected fraud through official Dubai Police channels. All reports are handled with complete confidentiality, the force said.