Dubai Police have arrested six individuals accused of defrauding a victim out of Dh2.6 million ($707,964) in a cryptocurrency scam. The suspects allegedly convinced the victim to engage in a cryptocurrency trading deal through an unlicensed exchange, seizing Dh2 million in cash and Dh600,000 in virtual assets. The victim, who was not identified, had sought to buy cryptocurrency with a large sum of cash and contacted an unlicensed exchange to complete the transaction. The suspects transferred virtual assets to decentralised digital wallets, believing the complexity of tracing funds would make it difficult for investigators to locate them.
Despite the challenges, Dubai Police identified and apprehended the suspects quickly. Officers from the Criminal Investigation Department collected evidence to identify the suspects, while another team conducted technical analysis of virtual asset transactions to trace funds between different digital wallets. The police managed to secure all the stolen virtual assets before they could be transferred or disposed of.
Dubai Police warned the public against dealing with unlicensed entities offering cryptocurrency services. They emphasised the importance of verifying that virtual asset trading providers are legally authorised before conducting financial transactions. The police also highlighted that the public should use approved providers to avoid fraud and theft.
In 2023, another gang was fined over a Dh10 million Bitcoin investment scam that affected more than 180 people across the country. The group used social media to promote cryptocurrency investments and promised substantial returns despite lacking the necessary authorisation. The Dubai Criminal Court fined each member of the gang more than Dh321,000, along with an additional Dh20,000 for practising virtual asset work without obtaining a licence from the authorities.