UAE Court Orders Broker to Repay Investor After High-Risk Trading Breach

A civil court in Al Ain has ordered a trading broker to repay $124,361 to a young investor after finding that the broker violated their agreement by using excessive leverage and high-risk strategies that rapidly wiped out the account.

The Civil, Commercial and Administrative Court terminated the trading arrangement, ordered restitution of the losses, and awarded the claimant Dh10,000 in moral damages, along with legal fees and court costs.

According to court filings, the investor deposited approximately $135,501 in USDT into a trading account and granted the broker discretionary management rights in exchange for 30 percent of any profits. Communications between the parties set daily return expectations of 1 to 5 percent and imposed a stop-loss limit of 8 percent per trade, local media reported.

A court-appointed expert concluded that the broker adopted an unprofessional and excessively risky approach. The findings showed that the broker exceeded agreed risk parameters, used leveraged margin trading beyond the investor's capital, and relied on a high-fee execution method that generated more than $46,000 in platform charges within days, accelerating the losses.

In its ruling, the court said the broker's actions constituted a material breach of contract, justifying termination of the agreement and full restitution under civil transactions law. The case highlights growing judicial scrutiny of managed trading arrangements involving digital assets and leveraged strategies in the UAE.