Dubai-based couple duped in crypto scam wins back Dh1.55 million

An Asian investor and his wife have successfully recovered Dh1.55 million after falling victim to a cryptocurrency scam by an Arab national, highlighting the risks of unregulated digital investments in the UAE.

According to court records, the fraudster convinced the couple to invest in a digital currency deal, promising guaranteed returns. Trusting the scheme, the investor and his wife went to the accused’s office and handed over Dh1.5 million to purchase 400,000 units of cryptocurrency.

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The accused told them the coins would be transferred to the victim’s electronic wallet, but the transaction never took place. When the victim inquired about the delay, the fraudster stalled with weak excuses and eventually stopped responding.

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The couple reported the matter to police. Investigations confirmed that the accused had collected the funds but did not execute the cryptocurrency purchase. He was tried in criminal court for fraudulent appropriation of funds and fined Dh10,000. The criminal ruling addressed only the intent to commit theft and did not resolve the civil aspect of recovering the misappropriated money.

The case then moved to the Civil, Commercial, and Administrative Court. The investor sought repayment of Dh 1.5 million along with Dh100,000 in damages for financial loss, missed investment opportunities, legal fees, and other related costs. The defendant’s lawyer argued that the civil case should be suspended pending appeal, maintaining that his client did not misappropriate the money, citing his criminal acquittal.

The court ruled in favor of the investor, stating that the accused had received the funds for purchasing cryptocurrency but failed to do so. The criminal acquittal does not negate receipt of the funds; it only negates criminal intent. The court emphasised that transferring the money to another party without completing the purchase constituted unjust enrichment under Article 318 of the UAE Civil Transactions Law, which requires repayment of money taken without a legitimate reason.

The court noted that the investor suffered material and moral damages from being deprived of the funds and covering litigation expenses. The fraudster was ordered to repay the Dh1.5 million and an additional Dh50,000 in compensation, bringing the total to Dh1.55 million. Legal experts warn investors to exercise extreme caution in digital currency deals, verify all investment opportunities, and report suspected fraud promptly.