Cryptocurrency fraud is inherently global. Victims may be located in one country, perpetrators in another, and digital assets can move across borders in seconds. One of the greatest challenges facing victims and investigators alike is not identifying wrongdoing—but enforcing accountability across jurisdictions.
BlockDivers is proud to share a significant milestone in this evolving legal landscape: the successful recognition and enforcement of a U.S. federal crypto-fraud judgment by the Dubai Courts, one of the first known instances of its kind.
The FX Winning Case: From U.S. Courtroom to International Enforcement
The enforcement action arose from an $85 million judgment awarded to plaintiffs by the United States District Court for the Southern District of Florida in connection with the FX Winning cryptocurrency Ponzi scheme. The FX Winning fraud impacted victims around the world, highlighting the transnational nature of modern crypto crime.
While the judgment was issued in the United States, the principal defendant, David Merino, remained outside U.S. jurisdiction and is believed to be residing in Dubai. That reality required a fundamentally different strategy—one focused on international legal recognition rather than domestic enforcement alone.
Enforcement Action in Dubai
Working in close coordination with experienced local counsel and partners, BlockDivers supported the effort to have the U.S. judgment formally recognized by the Dubai Courts.
The Dubai Courts ultimately granted enforcement measures that included:
- Formal recognition of the U.S. judgment
- A travel ban against the defendant
- An asset freeze
- The issuance of an arrest warrant
These actions represent a meaningful step forward in international cooperation on cryptocurrency fraud cases and demonstrate a growing willingness by foreign courts to engage with complex digital-asset matters originating abroad.
Why This Matters for Crypto Victims Worldwide
Historically, many victims of crypto fraud have been told—explicitly or implicitly—that once funds or defendants move offshore, recovery becomes unlikely. This case challenges that assumption.
While every jurisdiction is different, and outcomes are never guaranteed, this enforcement action illustrates that carefully constructed legal frameworks, credible forensic evidence, and strong local partnerships can produce real results—even in challenging cross-border scenarios.
As Dan Lounsbury, CEO of BlockDivers, explains:
“The global legal landscape of crypto jurisdictions varies significantly from country to country, and it was extremely difficult to construct the proper legal channels and framework required to effect these actions. We are very proud of our local partners, without whom this outcome would not have been possible.”
BlockDivers’ Role
BlockDivers supported this enforcement effort by contributing blockchain forensic analysis, investigative intelligence, and jurisdiction-specific strategy coordination. On the ground in Dubai, the BlockDivers team was responsible for directing and leading this entire effort. Our work was conducted alongside legal counsel and international partners, reinforcing our core belief that crypto enforcement requires a multidisciplinary and global approach.
Looking Ahead
As regulators, courts, and legal systems continue to adapt to the realities of digital assets, cases like this one may serve as reference points for future enforcement efforts. While no two cases are identical, the FX Winning matter underscores an important reality: crypto fraud is not beyond the reach of the law.
BlockDivers remains committed to helping victims, law firms, and institutions pursue accountability—wherever the facts and the law may lead.
