DFSA scam alert: Impersonation in Blockchain Settlement Fraud

The Dubai Financial Services Authority (DFSA) has issued a scam alert after fraudsters began impersonating the regulator in communications related to blockchain and cryptocurrency transactions.

According to the DFSA, fraudulent letters and emails falsely claim to assist with the processing, settlement, verification, or release of funds tied to blockchain, cryptocurrency, or “DeFi” transactions. The correspondence uses the DFSA’s name and logo, and may reference “blockchain settlement blocks”, “verification requirements”, “segregated wallets”, or “compliance protocols” to pressure individuals into making further payments or deposits before their funds are released.

The DFSA clarified that these communications are fraudulent and were not issued by the regulator. It emphasized that it does not process, hold, verify, settle, or release client funds, nor does it require consumers to make deposits or payments to access investment proceeds, cryptocurrency holdings, or blockchain-related assets. The DFSA also does not issue letters about processing customer funds through blockchain settlement systems, operate customer wallets, settlement blocks, or cryptocurrency custody arrangements.

The regulator warned that such schemes are typical of advance fee fraud and asset recovery scams, aiming to trick recipients into sending money or personal information. It advised the public not to respond to any related communications and never to send money or provide personal, banking, cryptocurrency wallet, or identification details to individuals connected with the scam.