Dubai: Six suspects arrested after crypto scam worth more than 600,000 euros

An exchange that turns into a trap. Dubai Police announced on October 30 the arrest of six suspects in a fraud case involving an unlicensed cryptocurrency exchange service. The damage reached 2.6 million dirhams (or approximately $708,000): two million in cash and 600,000 in digital assets. Investigators claim to have secured all of the stolen cryptocurrencies, without specifying the fate of the cash.

Key Points

Six people were arrested after an organized transaction with an unauthorized operator.

The victim lost two million dirhams in cash and 600,000 dirhams in cryptocurrencies.

Two teams carried out field investigations and monitoring of digital transfers.

The police call for checking the authorizations of service providers before any operation.

A crypto transaction followed by an escape with cash

According to information provided by the police, the victim was looking to buy cryptocurrencies with a large sum of cash. She contacted an unlicensed exchange service, then met several people whom investigators say were members of the group.

During the operation, the victim also transferred digital assets to designated wallets. The suspects then allegedly took the cash and fled. Public information does not detail the arrangement in sufficient detail to explain why the transaction combined a cash purchase and a transfer of cryptocurrencies.

After the report, the authorities launched two parallel investigations. A first team collected evidence and searched for suspects. A second tracked the movements of digital assets between multiple wallets.

The police say they identified and arrested the six people quickly, without providing a specific time frame. It also claims to have secured the cryptocurrencies before their further dispersion. The press releases reported by the press do not specify either the assets concerned or the method used to immobilize them.

Dubai recalls the rules applicable to crypto providers

Following this case, police are warning against transactions with unknown intermediaries or unlicensed services. In particular, it calls for caution regarding promises of high returns and cash transactions organized with unverified interlocutors.

This alert occurs in a context of operator monitoring. On October 7, 2025, Dubai's Virtual Assets Regulatory Authority, VARA, announced sanctions against 19 companies for unlicensed activities and violations of commercial communications rules. The measures included orders to cease activity and fines ranging from 100,000 to 600,000 dirhams. No link with the six suspects in this new case has been established.

VARA regulates virtual asset services in the emirate, with the exception of the Dubai International Financial Centre, which falls under a separate regime. Its public register makes it possible to verify the status of a company and the authorized activities.

Approval in principle is not enough: companies that benefit from it cannot yet serve customers until they have obtained their full license.