Gang of 7 defrauds 180 people of $1b in bitcoin business, seizes Dhs320,000 from 5 others

Mohammed Yaseen, Staff Reporter

An Asian gang of 7 people lured victims who planned to invest in trading the digital currency "Bitcoin," and seized Dhs320,000 from 5 people, in addition to seizing other amounts estimated at $1 billion.

As many as 180 persons reported that they had been defrauded through 3 companies and $10 million seized.

According to the case file, the Dubai Misdemeanour and Contravention Court on Tuesday fined two gangsters in presence and the others in absentia, Dhs10,000 each, on charges of appropriating the money of others by fraud.

The court also fined them jointly Dhs320,000, the value of the money of the crime, in addition to a fine of Dhs10,000 on charges of practising a financial activity without a licence.

The events of the case took place between September and November 2022, when 5 people submitted a report stating that they had been defrauded by a gang promoting the trading of the virtual currency "Bitcoin".

One of the victims said in the interrogations that he saw advertisements on social media platforms, announcing the large profits which investors reap in this type of trading, so he contacted the advertiser’s numbers, where one of the employees in the place affirmed to him that the profits amount to 100% and that the company distributes the profits within a month from the date of investment.

Another victim stated that he deposited Dhs76,000 in the company, but when he decided to visit the company's headquarters, he found it closed.

Three other victims reported that they had deposited different amounts for investment, with three companies they knew through advertisements, but they soon realized that they had been defrauded and lost their money.

According to the case file, a policeman stated in the interrogations that more than 180 people headed to the police station to report that they had been defrauded by an Asian gang, through 3 digital currency trading companies "Bitcoin", adding that the gangsters received the amounts from the victims in installments and handed over cash profits to some of the victims.

The policeman added that two gangsters were arrested on the border of a neighbouring country while trying to flee, and it was found that the seized amounts were estimated at Dhs10 million and more than a billion dollars.

According to the Economic Crimes Department, the department found video clips luring victims into buying digital currencies and investing through companies owned by gang members who could seize more than $300 millions from about 3,000 victims who reported that they had been defrauded.