Dubai Police arrest six over Dh2.6 million cryptocurrency fraud

Dubai Police have apprehended a group of six individuals accused of defrauding an undisclosed victim of Dh2.6 million in a cryptocurrency scam involving an unlicensed exchange. The suspects allegedly enticed the victim to enter into a cryptocurrency trading arrangement before appropriating Dh2 million in cash and Dh600,000 worth of digital assets.

Officers from the Criminal Investigation Department identified and arrested the suspects, while another team recovered the stolen digital assets. The victim, who remains unnamed, sought to acquire cryptocurrency using a substantial sum of cash and reached out to an unlicensed exchange to finalize the transaction. Dubai Police reported that the suspects seized the cash and fled the scene, believing that the anonymity of digital transactions and the difficulty in tracing funds between virtual wallets would hinder investigators.

After the incident, the police launched an investigation, collecting evidence to identify and apprehend the suspects. Another team performed technical analysis of the virtual asset transactions, tracing the funds between different digital wallets. The police emphasized the importance of verifying the legal authorization of cryptocurrency trading providers before engaging in financial transactions.

They cautioned the public against dealing with unlicensed entities and urged them to use approved providers to avoid fraud and theft. In 2023, a similar gang was penalized for a Dh10 million Bitcoin investment scam that impacted over 180 people across the country. The gang, consisting of one Pakistani citizen and six Bangladeshis, utilized social media to promote cryptocurrency investments and promised substantial returns despite lacking the necessary authorization.

They were each fined more than Dh321,000, plus Dh20,000 each for practicing virtual asset work without obtaining a license from the authorities.