Six arrested in Dubai over Dh2.6 million cryptocurrency fraud scheme
Dubai Police arrested six suspects accused of stealing Dh2.6 million via a cryptocurrency scam using an unlicensed exchange. Stolen virtual assets were fully recovered.
Dubai gang seized cash and crypto from victim seeking unlicensed exchange
Dubai Police have arrested six people accused of defrauding a victim of Dh2.6 million ($707,964) through a cryptocurrency scam, thenationalnews.com reported on Friday.
The suspects allegedly convinced the victim to enter a cryptocurrency trading deal, then seized Dh2 million in cash along with Dh600,000 in virtual assets before fleeing. The victim had been seeking to purchase cryptocurrency with a large sum of cash and had contacted an unlicensed exchange to complete the transaction.
As part of the scheme, the victim transferred virtual assets to decentralised digital wallets, which do not directly display the owners' identities. "The suspects then took the cash and fled," Dubai Police said in a statement. "They believed the nature of digital transactions and the complexity of tracing funds between virtual wallets would make it difficult for investigators to identify and locate them."
Officers from the Criminal Investigation Department identified and apprehended the suspects. A separate team conducted technical analysis of virtual asset transactions, tracing funds across multiple digital wallets. "The suspects were arrested in a short time despite the complexity of the case and the speed at which cryptocurrencies can move between wallets," the police added. Specialist experts managed to trace and secure all stolen virtual assets before they could be transferred elsewhere or disposed of.
Dubai Police did not reveal further details about the suspects' identities.
The force issued a public warning against dealing with unlicensed individuals or entities offering cryptocurrency services, particularly those promising large financial returns in a short period. "People should verify that virtual asset trading providers are legally authorised before conducting financial transactions," the police said. "The public should use approved providers to avoid fraud and theft."
The arrest follows a separate case from 2023, in which a gang was fined over a Dh10 million Bitcoin investment scam affecting more than 180 people across the UAE. That group used social media to promote cryptocurrency investments and promised substantial returns without holding the necessary authorisation. The Dubai Criminal Court found the gang — comprising one Pakistani national and six Bangladeshi nationals — had posted videos online about mining and investing in cryptocurrency. Each member was fined more than Dh321,000, plus an additional Dh20,000 for operating virtual asset services without a licence.
Source: Google News AE