The UAE digital asset market is growing rapidly, alongside a notable rise in sophisticated fraud targeting investors of all nationalities.
01 — WhatsApp & Telegram
Pig Butchering: fraudsters build trust through long conversations, then direct victims to a fake crypto platform. Warning signs: guaranteed profits, small initial withdrawals, unlicensed platform. Law: Federal Decree No. 34/2021.
02 — Fake ICO Projects
Professional White Paper and fake office, then disappearance after fundraising. No licence from SCA, VARA or DFSA. Law: Cabinet Resolution No. 111/2022.
03 — Ponzi Schemes
Examples: HyperVerse, OneCoin, Bitconnect. Fixed guaranteed returns, referral systems, impossible withdrawals. Dubai courts have issued Punitive Damages awards.
04 — Wallet & Private Key Theft
Phishing, Private Key theft and hidden Malware. Federal Decree 34/2021 explicitly criminalises unauthorised access to digital systems.
05 — Impersonation of Regulators
False claims of VARA or DFSA licensing. Verify via public registers of VARA, DFSA and FSRA on their official websites.