Dubai Police Recover $1.9 Million Taken In Bitcoin Heist Using AI Tech

Francisco Memoria
  • Police in Dubai managed to recover $1.9 million that were taken from two brothers who were looking to buy bitcoin.
  • The brothers were ttacked by a gang of 10 men. All of them were arrested within 48 hours of the incident.

Police in Dubai have recently been able to arrest ten gang members who reportedly stolen 7 million AED ($1.9 million) from two Asian brothers who were looking to buy bitcoin in the Al Muraqabbat area, according to news outlet Gulf News.

Per the news outlet’s report, the two brothers wanted to buy the flagship cryptocurrency, and were lured by some of the gang’s members to an office inside a market. In it, they were then assaulted, robbed at gunpoint, and threatened before being tied and locked inside said office. The assailants then fled the scene.

Lieutenant Colonel Adel Al Joker, Director of Dubai police's Criminal Investigation Department, stated:

"The brothers searched randomly in the market to buy Bitcoin. The gang lured them claiming they can sell them Bitcoin.”

Lieutenant Colonel Adel Al Joker

While six members were inside the office with the two brothers, three reportedly waited outside. The gang’s members managed to get access to the office by tricking its owner into believing they were going to buy it.

Per Dubai Police’s commander-in-chief, Major General Abdullah Khalifa Al Merri, the gang’s mastermind was identified within four hours of the incident, and his whole gang had reportedly been caught within 48 hours, as police quickly managed to locate them. The stolen funds were reportedly returned to the two victims.

Major General Khali Ebrahim Al Mansour, assistant commander-in-chief, revealed that the police’s success was partly driven by the data analysis center using smart programs and artificial intelligence technology to trace the gang’s members. He was quoted as saying:

“Using AI helped Dubai Police to arrest a Gulf National, who is the head of the gang, and other Asian suspects The information from the data analysis center helped the officers to arrest all gang members."

Major General Khali Ebrahim Al Mansour

Attacks in which criminals try to get bitcoin from their victims are seemingly increasing. As recently covered, two robbers used bear spray to steal from bitcoin ATMs in the United States earlier this month. CCTV footage of the robbery ended up on YouTube.

Fed Rate Cuts Will Likely Boost Bitcoin Says Deutsche Bank

Neil Dennis

The central banks of some of the world's largest economies are about to embark on interest rates cuts and this is likely to play into the hands of Bitcoin investors, says Deutsche Bank's Jim Reid.

Global growth is slowing, a result of falling business confidence as trade tensions around the world increase - led by the seemingly intractable tariff feud between the US and China.

Under Pressure to Cut

While these effects are starting to be felt around the world, the caretakers of the most powerful economy on earth - under severe politicial pressure from President Trump - are already looking towards monetary policy measures that will support growth.

The Federal Reserve has already turned dovish, and even though it left interest rates on hold at 2.25-2.5% at its May and June meetings, comment from Fed officials this week has left the impression a rate cut could soon be on the way.

In a speech on Tuesday, Fed Chairman Jerome Powell said:

The cross-currents have re-emerged, with apparent progress on trade turning to greater uncertainty and with incoming data raising renewed concerns about the strength of the global economy.

A further hint that the Fed was moving towards a quarter point rate cut at its July meeting was Powell's assurance on Tuesday that "an ounce of prevention is worth more than pound of cure".

Dollar Weakening

Insofar as rate cuts and other monetary easing policies from the Fed undermine the US dollar, such policy dovishness can be seen as supportive for Bitcoin's price versus the US currency (BTC/USD).

Jim Reid, multi-asset research strategist at Deutsche Bank said on CNBC on Wednesday that he thought the recent move in Bitcoin was emblematic of the current weakness in the dollar:

If the major central banks are going to be this aggressive then alternative currencies start to look more attractive.

Cryptocompetitor

Reid has been a long-time advocate of alternative currencies. He said back in November 2017, just before the massive Bitcoin rally that took the BTC price close to $20,000 that the use of virtual currencies should be promoted around the world as people lose faith in central banks' ability to control fiat currency.

He said:

Although the current speculative interest in cryptocurrencies is more to do with blockchain technology than a loss of faith in paper money, at some point there will likely be some median of exchange that becomes more universal and a competitor of paper money.