Dubai Police have arrested a six-member gang accused of swindling someone out of Dh2.6 million ($707,964) in a cryptocurrency scam involving an unlicensed exchange.
The suspects allegedly persuaded the victim to enter a cryptocurrency trading deal before seizing Dh2 million in cash and Dh600,000 in virtual assets.
Officers from the Criminal Investigation Department identified and arrested the suspects, while another team traced and secured the stolen virtual assets.
The victim, who was not identified, had sought to buy cryptocurrency with a large sum of cash and contacted an unlicensed exchange to complete the transaction, Dubai Police said. 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. 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,” Dubai Police said in a statement on Friday.
After the incident, officers launched an investigation and collected evidence to identify and apprehend the suspects. Another team conducted technical analysis of virtual asset transactions and traced funds between different 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 also managed to trace and secure all the stolen virtual assets before they could be transferred to other wallets or disposed of.”
The police did not reveal details about the suspects.
The force warned the public against dealing with unlicensed people or entities offering cryptocurrency services, especially those promising large financial returns within a short period. "People should verify that virtual asset trading providers are legally authorised before conducting financial transactions. The public should use approved providers to avoid fraud and theft," the police added.
In 2023, another gang were fined over a Dh10 million Bitcoin investment scam that affected more than 180 people across the country. The group used social media to promote cryptocurrency investments and promised substantial returns despite lacking the necessary authorisation.
The Dubai Criminal Court said the gang, which comprised one Pakistani citizen and six Bangladeshis, posted videos on social media about mining and investing in cryptocurrency.
The men were each fined more than Dh321,000. In addition, they were fined Dh20,000 each for practising virtual asset work without obtaining a licence from the authorities.
