Crypto Loan Default Sends the UAE Resident to Jail

Endy Callahan

According to the local press, Abu Dhabi’s police officers have recently arrested a foreign resident. The man used to invest in crypto. His loan of one hundred thousand USD was unsuccessful three years ago. Due to default, the investor was incapable of making payments to return the money.

The man was working as a flight attendant and says that the local authorities sent him to jail for three years. The incident happened in the UAE and the reason was the man’s inability to perform installments on a one-hundred-thousand-USD loan. The money the offender borrowed was to be invested in the cryptocurrency when it had reached its peak.

One of the users posted information related to his repayment scheme for over one hundred thousand USD. The image shows that the debtor had to transfer the money via one of the local banks. According to the anonymous source, the investor had to leave his employer due to COVID-19 and couldn’t keep on paying out the entire sum by the end of next year.

Investments Performed after the Spike

The crypto community is still discussing the event. Many users are trying to foresee and predict the investor’s further actions. The aviation worker received the loan three years ago. On the very same day, the crypto reached almost twenty thousand USD, which was the greatest record. In about ten months, the man admitted that he had lost almost eighty-five percent of his digital funds. He had spent his budget on XLM, NEO, ETH, and LTC besides a few less significant coins that immediately lost their value.

The man announces that what he did was his first practice in the crypto industry. He was then ready to take the risk and trusted he would manage to pay out the loan. The man is now facing his jail time overseas. The UAE’s government treats debts as a criminal issue and does not regard this matter as civil. Monthly payments that others require may lead to serious problems if not paid in due time. In this case, the criminal is jailed for around three years. During that period, the former flight attendant will still have to repay the loan.

Only several countries permit jailing debtors; however, is some instances this strict and rather extreme measure is unavoidable. In many areas, people who avoid repaying fine for traffic violations or drunken driving will inevitably lead to jail time.

Avoiding Responsibilities Abroad

Offenders oftentimes share their experiences and opinions. Some claim that they can avoid punishment overseas. They simply start a new life with new identities. The ideas seem reasonable enough as long as there is no travel ban on the debtor. As a rule, banks open cases, and debtors get stuck until they repay. Before being imprisoned, the debtor is given some time to change the situation. The individual can avoid jail if he returns the loan within a set timeframe