Dubai: Woman Jailed, To Be Deported For Dh3-Million Theft In Crypto Wallet Swap

A woman who covertly swapped a cryptocurrency wallet during a business meeting in Dubai has been jailed for two months and fined after courts found she played a key role in defrauding an investor of digital assets worth about $1 million.

Court records show the woman carried out the fraud by discreetly replacing a hardware wallet containing private access keys with another identical device she had prepared in advance.

The swap enabled the cryptocurrency to be transferred out of the investor's control without his immediate knowledge.

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The case dates back to when the investor was introduced to a man who claimed to own an investment company and expressed interest in financing a business project.

Before finalising any agreements, the man requested what he described as“proof of financial capability”, asking the investor to demonstrate ownership of substantial cryptocurrency holdings.

A verification meeting was arranged in Dubai to complete the process. The man failed to attend, citing last-minute reasons, and instead sent his wife to act on his behalf.

According to investigators, the woman conducted the meeting and, while handling the verification procedure, switched the genuine digital wallet with a similar-looking device.

The investor later discovered that his cryptocurrency holdings had been transferred to other parties.

Authorities launched a criminal investigation, and the case was referred to the Dubai Misdemeanours and Infractions Court.

The court convicted the woman of theft, sentencing her to two months' imprisonment, fining her the value of the stolen assets at the time of the offence, and ordering her deportation from the UAE.

The Court of Appeal later upheld the criminal ruling.

Following the criminal judgement, the investor filed a civil lawsuit seeking compensation for financial losses and lost profits, arguing that the value of the cryptocurrency had increased after the offence.

The civil court ruled in his favour, ordering the defendant to pay Dh4.3 million in compensation, along with 5 per cent annual legal interest until full payment. The court stated that digital currencies are recognised as financial property and are protected under the law.

The woman's husband, identified in court documents as a key participant in the scheme, remains at large.

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