Dubai Employee Steals $200,000 in Cryptocurrency Embezzlement Fraud
According to Dubai-based newspaper Khaleej Times, a cryptocurrency trading platform in the city caught its own employee stealing cryptocurrency for his private use. Both the organization and the convict were kept anonymous in the entire story.
The man was an expert in handling trading strategies, which was why he deceived the software responsible for keeping a track of cryptocurrency transactions by several traders.
He would convert a number of the currency being traded on the platform. Then, he would enter the database platform and upload bogus information to the imitation virtual accounts to convert the currency to his own account and other cryptocurrency trading platforms.
The employer earned laurels and had no reason to suspect the employee as he himself had developed the trading platform that is cryptocurrency.
Initially, the company realized that cryptocurrency trades were inconsistent and did not match the records in the system. But they couldn't find the criminal because their security system was faulty and the entire group was using the administrator account to access the website. He was gradually accumulating the converted amount and was captured with additional details on his personal computer. He had been using fake usernames and reports while interacting with users (possible buyers) online. He wanted to purchase a house from the stolen Dhs 800,000 (roughly $0.2 Million), but his dreams were cut short when the company filed a lawsuit against him.
The information was gathered by the Experience and Disputes Settlement Department of the Dubai Ruler's Court, who had hired an expert to «ascertain the amount of the fraud and the damages incurred by the business.»
This past year, the Central Bank of UAE cautioned people regarding the use of cryptocurrencies due to the risks and phishing scams involved. While, the country has not regulated or prohibited digital currencies yet, it has not recognized it as a legal payment method either. The financial regulators warned consumers who were likely to invest in ICOs against potential harmful and misleading projects - they said that investors were at their own risk.
Bitcoin and ICOs are increasingly becoming a subject of interest in the country. Based on Google Trends, UAE is one of the top 10 countries that have the maximum rate of interest in bitcoin by area.