A former Etihad Airways flight attendant says he faces as much as three years in jail within the United Arab Emirates (UAE) for being unable to make installments on a $100,000 mortgage he took out to spend money on crypto across the all time excessive.
Reddit person Crypthomie, recognized solely as a 34-year-old man who isn’t an UAE citizen, posted a picture to the Bitcoin subreddit on June 9 of his compensation schedule for a 338,000 Dirham mortgage — roughly $109,000 on the time— with Emirates Islamic Financial institution.
In keeping with Crypthomie, he has misplaced his job with Etihad because of the pandemic and might not afford to pay the required month-to-month installments of roughly $2230. Nonetheless, he’s required to repay the financial institution 393,296.80 Dirham — about $127,000 on the time — by the tip of 2021.
Investing after the height
Crypthomie’s story went semi-viral within the crypto neighborhood in August 2018 after posting the identical financial institution installment schedule picture and revealing his story of woe.
The aviation worker took out the mortgage on Dec. 18, 2017, the identical day Bitcoin (BTC) reached its all-time excessive of virtually $20,000.
After lower than a yr, he reported a 85% loss on his digital investments. The redditor mentioned he had bought Neo (NEO), Stellar (XLM), Litecoin (LTC), Ethereum (ETH) and “some shitcoins that misplaced 95 % of their worth.”
“It was my first speculative funding. I feel it is an age the place we’re nonetheless unconscious and take a variety of danger if we do not have massive tasks like a child or payments to pay.”
Going through jail time overseas
Not like in lots of different international locations, the UAE treats debt as a prison matter quite than a civil one. If somebody is unable to make his required month-to-month funds, they are often sentenced to as much as three years in jail and probably longer if the mortgage stays unpaid.
“We’ll be despatched to jail inside a number of months,” he mentioned referring to his former associate who has an unrelated debt, “and [the worst part] is that we can’t be capable to talk.”
Many international locations prohibit jailing debtors however authorities typically discover methods round them. In america, failure to repay fines for civil offenses like jaywalking and different site visitors violations can typically result in jail time. The identical subject contributes to excessive incarceration charges for indigenous individuals in Australia.
Fleeing the nation?
Most Reddit customers replying to the thread advocate getting out of Dodge shortly.
“Get out of that nation and begin a brand new life with new names and identities dude,” mentioned person _Neev.
“Final time I checked, Abu Dhabi had ocean entry. I might be studying to sail actual fast in your sneakers,” mentioned maxcoiner.
Nonetheless, the unique poster shot down these concepts. “Now we have a journey ban on us because the financial institution opened a case. We’re caught till we will pay however will likely be jailed inside a number of weeks if we don’t ship something.”