A Dubai-based digital currency trading company employee has been caught stealing Dh800,000 (roughly $200,000 USD). The theft was accomplished using fake accounts, bypassing the company’s lax security protocols.
Subscribe to the Bitsonline YouTube channel for more great interviews featuring industry insiders & experts
One Username For all Employees… What Could Possibly Go Wrong?
According to Khaleej Times, a number of questionable transactions were identified that did not accurately reflect system records. With all technical staff using the administrator user name, the employee was able to take advantage of his senior position without being suspected of wrongdoing.
Dubai-based Khaleej Times reported:
“He would convert a small percentage of the currency being traded on the platform. Then, he would enter the database platform and upload false information into the fake virtual accounts to convert the currency to his own account and other cryptocurrency trading platforms.”
When Something’s Up in Dubai, Call in the EDSD
The company filed a complaint with the Expertise and Disputes Settlement Department – a division of Dubai’s Ruler’s court that specializes in expedited dispute resolution. The department hired an expert to look into the matter and “determine the extent of the fraud and the damages incurred by the company.”
According to the crypto trading company, it had no reason to doubt the integrity of the employee, who remains unnamed, as he was developing the trading platform and was widely respected within the company.
Virtual Currencies in the Emirates
Cryptocurrencies are not illegal in the Emirates, though it is unclear whether they are considered assets or securities. Although real estate purchase have been made in bitcoin in Dubai, cryptocurrency cannot theoretically be used as legal tender. The city also boasts gold vaults for secure cryptocurrency storage.
Many investors in the region use the services of Dubai-based exchange Palmex. Though the UAE government and regulators have not banned these digital currencies, it has not stopped them from constantly warning its citizens about the risks of theft, fraud, and money laundering. Even the Central Bank of UAE has shown concern against the growing trend of virtual currencies.
What punishment should the employee face? Is the company at fault for having lax security procedures in place? Let us know your views in the comments below.
Images via Pixabay