In a landmark ruling that underscores the legal protection of digital assets, a Dubai court has sentenced a woman to imprisonment, deportation, and a substantial financial penalty for orchestrating a sophisticated cryptocurrency theft. The defendant was found guilty of defrauding an investor of digital assets valued at approximately Dh3.1 million ($1 million) through an audacious hardware wallet swap during a business meeting.
The case originated when an investor was approached by a man purporting to represent an investment company. This individual expressed interest in financing a business project but first demanded proof of the investor’s financial capability, specifically requesting a demonstration of substantial cryptocurrency holdings. A verification meeting was subsequently arranged in Dubai.
At the scheduled meeting, the man failed to appear, citing last-minute complications, and instead dispatched his wife as his representative. During the verification process, the woman covertly substituted the investor’s legitimate hardware wallet—a device containing the private keys necessary to access the digital currency—with an identical, pre-prepared counterfeit. This deceptive maneuver allowed the perpetrators to transfer the entire cryptocurrency balance out of the investor’s control without his immediate knowledge.
Following the discovery of the theft, authorities launched a comprehensive criminal investigation. The Dubai Misdemeanours and Infractions Court convicted the woman of theft, delivering a sentence of two months’ imprisonment. The court also imposed a fine equivalent to the value of the stolen assets at the time of the offense and ordered her deportation from the UAE upon completion of her jail term. This criminal ruling was later upheld by the Dubai Court of Appeal.
In a subsequent civil proceeding, the victim sought compensation for both his direct financial loss and the lost potential profits, arguing that the value of the cryptocurrency had appreciated significantly after the theft. The civil court ruled in the investor’s favor, ordering the defendant to pay Dh4.3 million in compensation plus 5% annual legal interest until the amount is settled in full. This civil judgement is particularly significant as it explicitly recognizes digital currencies as protected financial property under Emirati law.
The mastermind of the scheme, identified in court documents as the woman’s husband, remains at large and is wanted by authorities.