A woman who secretly swapped a cryptocurrency wallet during a business meeting in Dubai has been sentenced to jail and fined after being convicted of defrauding an investor of digital assets worth about $1 million.
Court records revealed that the woman played a central role in a carefully planned scheme that involved discreetly replacing a genuine hardware wallet containing private access keys with an identical device prepared in advance.
The swap allowed the victim’s cryptocurrency holdings to be transferred out of his control without his immediate knowledge, investigators said, effectively giving the perpetrators full access to the digital assets.
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 one of the investor’s business projects.
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 as part of a verification process.
A meeting was arranged in Dubai to complete this verification. However, the man failed to attend at the last minute, citing unspecified reasons, and instead sent his wife to act on his behalf.
According to the investigation, the woman conducted the meeting and handled the verification procedure, during which she covertly switched the investor’s genuine digital wallet with another similar-looking device.
At the time, the investor did not realise that the wallet had been replaced. It was only later that he discovered his cryptocurrency holdings had been transferred to other parties without his authorisation.
Authorities were alerted, and a criminal investigation was launched. Evidence collected by investigators linked the wallet swap directly to the woman, identifying her as a key participant in the fraud.
The case was referred to the Dubai Misdemeanours and Infractions Court, which found the woman guilty of theft under UAE law, recognising the stolen cryptocurrency as financial property.
The court sentenced her to two months’ imprisonment and imposed a fine equivalent to the value of the stolen assets at the time the offence was committed.
In addition to the jail term and fine, the court ordered the woman’s deportation from the UAE upon completion of her sentence, reflecting the seriousness with which such financial crimes are treated.
The woman appealed the verdict, but the Court of Appeal later upheld the criminal ruling, confirming both the conviction and the penalties imposed by the lower court.
Following the conclusion of the criminal proceedings, the victim filed a civil lawsuit seeking compensation for financial losses and lost profits.
He argued that the value of the stolen cryptocurrency had increased significantly after the offence, and that compensation should reflect both the original loss and subsequent gains he would have earned.
The civil court ruled in the investor’s favour, ordering the defendant to pay Dh4.3 million in compensation, along with five per cent annual legal interest until full payment is made.
In its reasoning, the court stated that digital currencies are recognised as financial property and are protected under the law, reinforcing the legal status of cryptocurrencies in civil disputes.
Legal experts said the ruling sends a strong message that crimes involving digital assets will be prosecuted in the same way as traditional financial offences.
Court documents also identified the woman’s husband as a key participant in the scheme. Authorities confirmed that he remains at large, and efforts to locate him are ongoing.
The case highlights growing awareness among UAE courts of cryptocurrency-related crimes, as well as the risks investors face when handling digital assets without strict security controls.
Officials have urged investors to exercise caution during verification meetings and to avoid handing over hardware wallets or private access keys under any circumstances.