The Dubai Financial Services Authority (DFSA) has issued an alert regarding a scam in which the DFSA is being impersonated.

The DFSA has become aware of fraudulent communications, including letters and emails falsely claim to assist with the processing, settlement, verification, or release of funds associated with blockchain, cryptocurrency, or “DeFi” transactions.

The fraudulent correspondence purports to be issued by the DFSA and bears the DFSA’s name and logo. In some instances, the communications refer to “blockchain settlement blocks”, “verification requirements”, “segregated wallets”, or “compliance protocols” allegedly requiring individuals to make further payments or deposits before their funds can be released.

A copy of the fake letter can be found here.

The DFSA said that it wishes to make it clear that these communications are fraudulent and were not issued by the DFSA. The DFSA does not process, hold, verify, settle, or release client funds. Nor does the DFSA require consumers to make deposits, verification payments, settlement payments, or other fees in connection with the release of investment proceeds, cryptocurrency holdings, or blockchain-related assets.

Additionally, the DFSA does not issue letters regarding the processing of customer funds through blockchain settlement systems, nor does it operate customer wallets, settlement blocks, or cryptocurrency custody arrangements.

These communications seek to mislead recipients into making  further payments to access or recover funds, a common feature of advance fee fraud and asset recovery scams.

The DFSA strongly advises the public not to respond to any communications relating to this scam and, under no circumstances, to send money or provide personal, banking, cryptocurrency wallet, or identification information to persons connected with it.