Dubai Court Jails Woman Over Dh4.3 Million Crypto Wallet Swap Scam

Source: CoinEdition Original Title: Dubai Court Jails Woman Over Dh4.3 Million Crypto Wallet Swap Scam Original Link: A Dubai court has sentenced a woman to jail and ordered her deportation after finding her guilty of stealing cryptocurrency worth about $1 million by secretly swapping a hardware wallet during a business meeting.

How the Crypto Wallet Swap Happened

According to court records, the fraud took place during a verification meeting arranged in Dubai. An investor had been introduced to a man who claimed to run an investment company and showed interest in financing a business project.

Before moving forward, the man requested “proof of financial capability,” asking the investor to demonstrate ownership of a large crypto holding. A meeting was scheduled in Dubai to verify this.

The man failed to attend and instead sent his wife to represent him. Investigators later established that during the meeting, the woman discreetly replaced the investor’s genuine hardware wallet, containing private access keys, with an identical-looking device she had prepared in advance.

Funds Moved Without Immediate Detection

The wallet swap allowed the cryptocurrency to be transferred out of the investor’s control without his immediate knowledge. The investor later discovered that his digital assets had been moved to other parties. Authorities launched a criminal investigation, and the case was referred to the Dubai Misdemeanours and Infractions Court.

Criminal Conviction and Deportation Order

The court convicted the woman of theft, sentencing her to two months in prison and fining her the value of the stolen assets at the time of the offence. The ruling also ordered her deportation from the UAE. The Court of Appeal later upheld the criminal judgment, confirming the conviction and penalties.

Civil Court Awards Dh4.3 Million in Compensation

Following the criminal case, the investor filed a civil lawsuit seeking compensation for both financial losses and lost profits, arguing that the value of the stolen crypto had risen after the theft.

The civil court ruled in his favour, ordering the woman to pay Dh4.3 million in compensation, plus 5% annual legal interest until full payment. In its decision, the court stated that digital currencies are recognised as financial property and are protected under UAE law.

Court documents identified the woman’s husband as a key participant in the scheme. He remains at large as authorities continue efforts to locate him.

The case highlights growing legal recognition of cryptocurrencies in the UAE, as well as the serious consequences of fraud involving digital assets.