A Dubai court has sentenced a woman to two months in jail and imposed heavy fines after finding her guilty of orchestrating a covert cryptocurrency scam that stripped an investor of digital assets worth nearly $1 million.
Court findings showed that the woman discreetly switched a hardware crypto wallet during a business meeting, replacing the investor’s genuine device—containing private access keys—with an identical wallet she had prepared beforehand. This allowed the cryptocurrency to be transferred out of the investor’s control without his immediate knowledge.
The case began when the investor was introduced to a man claiming to run an investment firm and offering to fund a business venture. Before proceeding, the man asked for “proof of financial capability,” requiring the investor to demonstrate ownership of significant cryptocurrency holdings.
A verification meeting was scheduled in Dubai, but the man failed to attend at the last minute and instead sent his wife to represent him. Investigators said it was during this meeting that the woman carried out the wallet swap while overseeing the verification process.
The investor later discovered that his cryptocurrency had been transferred to other parties, prompting a criminal investigation. The Dubai Misdemeanours and Infractions Court convicted the woman of theft, sentencing her to two months in prison, fining her the value of the stolen assets at the time of the crime, and ordering her deportation. The Court of Appeal later upheld the ruling.
In a subsequent civil case, the investor sought compensation, arguing that the value of the stolen cryptocurrency had increased after the theft. The civil court ruled in his favour, ordering the woman to pay Dh4.3 million in damages, plus 5 per cent annual legal interest until full payment. The court affirmed that digital currencies are recognised as financial property protected by law.
Court documents identified the woman’s husband as a key accomplice in the scheme. He remains at large.
