- Dubai court jails woman after discreet hardware wallet swap drains $1,000,000
- Crypto verification meeting turns criminal after identical wallet replacement scheme
- UAE courts affirm cryptocurrency theft carries prison, fines, and deportation penalties
Dubai courts have uncovered a sophisticated cryptocurrency scam involving a hardware wallet switch that resulted in losses estimated near $1,000,000. The case began as a private investment discussion linked to a proposed business project, where an investor met a man claiming to manage an investment firm and offer funding.
However, the discussion quickly shifted toward verifying financial strength, as investigators said the man demanded proof showing control of a substantial crypto portfolio. As a result, both sides agreed to meet in Dubai for in person verification, with the meeting focused solely on confirming ownership of digital assets.
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Wallet Swap Executed During Verification Meeting
On the scheduled day, the supposed investor failed to attend the meeting and instead sent his wife as an authorized representative. During the verification process, the scheme quietly unfolded as court evidence showed the woman discreetly swapped the investor’s hardware wallet.
The replacement device closely resembled the original, which avoided suspicion and allowed access to private keys without immediate concern. Moreover, the compromised wallet enabled unauthorized crypto transfers, with funds moving away from the investor’s control shortly after the meeting ended.
The investor later noticed missing assets and alerted authorities, prompting Dubai police to launch a criminal investigation into suspected digital theft.
Criminal Trial Leads to Jail and Deportation
Prosecutors referred the case to the Dubai Misdemeanours and Infractions Court, where judges reviewed evidence showing deliberate planning and coordinated execution. The court found the woman guilty of theft under UAE criminal law and sentenced her to 2 months in prison with deportation.
Additionally, judges imposed a fine matching the crypto value at the offence time, while the Court of Appeal later upheld the conviction and penalties. Court records also identified the woman’s husband as a key participant, and authorities continue efforts to locate him as the investigation remains active.
Civil Court Awards Compensation for Financial Losses
Following the criminal ruling, the investor filed a civil lawsuit seeking compensation for direct losses and missed profits. The civil court ruled in his favour, ordering Dh4.3 million in compensation with 5 percent annual legal interest until full payment.
Importantly, the court confirmed that digital currencies qualify as protected financial property, reinforcing legal safeguards for crypto holders in the UAE. Separately, the ruling reflects stronger enforcement against crypto related fraud, as officials aim to deter misuse of digital assets through strict legal action.
Ultimately, the case highlights serious consequences for deceptive crypto practices while strengthening confidence in the UAE’s approach to digital asset protection.
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