An Asian investor and his wife have successfully recovered Dh1.55 million after falling victim to a cryptocurrency scam involving an Arab national. The case underscores the risks associated with unregulated digital investments in the UAE.
According to court records, the fraudster convinced the couple to invest in a digital currency deal, promising substantial returns. Trusting the offer, the investor and his wife visited the accused’s office and handed over Dh1.5 million for the purchase of 400,000 units of cryptocurrency. The accused assured them that the coins would be transferred to their electronic wallet. However, the transaction never took place. When the couple asked about the delay, the fraudster made weak excuses and eventually stopped responding altogether.
The couple reported the incident to the police, which launched an investigation. Authorities confirmed that the accused had received the funds but failed to carry out the cryptocurrency transaction. As a result, the accused was tried in criminal court for fraudulent appropriation of funds and fined Dh10,000. However, the criminal court ruling only addressed the intent to commit theft, leaving the civil aspect of recovering the misappropriated funds unresolved.
The case then moved to the Civil, Commercial, and Administrative Court, where the investor sought repayment of the Dh1.5 million, along with Dh100,000 in damages. This amount covered financial losses, missed investment opportunities, legal fees, and other associated costs. The defendant’s lawyer argued that the civil case should be put on hold pending an appeal, asserting that his client did not misappropriate the funds and referencing his client’s criminal acquittal.
The court ruled in favour of the investor, stating that although the accused had been acquitted of criminal charges, he was still obligated to return the funds. The ruling emphasized that transferring the money without completing the purchase of cryptocurrency constituted unjust enrichment under Article 318 of the UAE Civil Transactions Law. This law requires repayment of money taken without a legitimate reason.
The court also acknowledged the material and moral damages suffered by the investor, including the financial burden of covering litigation expenses. The fraudster was ordered to repay the Dh1.5 million along with an additional Dh50,000 in compensation, bringing the total to Dh1.55 million.
Legal experts are advising investors to be cautious when dealing with digital currency investments. They recommend thoroughly verifying investment opportunities and reporting any suspected fraud promptly to avoid significant financial loss.
