The Dubai Civil Court of First Instance has ordered a borrower to pay AED 1,119,794, together with legal interest at 5% per annum, after it was established that he had borrowed 305,121 units of a digital currency and undertook to repay its value either in the same currency or in UAE dirhams, but failed to do so on the agreed date.The court relied on a signed acknowledgment of debt submitted by the claimant, considering it sufficient evidence of the debt, particularly as the defendant neither appeared before the court nor provided proof that the amount had been repaid.According to court documents, the claimant stated that the defendant borrowed 305,121 units of Tether, a digital currency pegged to the US dollar, under a written acknowledgment. The defendant allegedly undertook to repay the amount on a specified date, either in digital currency or by transferring its equivalent value in UAE dirhams to the claimant’s account. The claimant said the defendant failed to meet this obligation despite repeated demands for repayment, prompting the filing of a lawsuit seeking recovery of the loan amount, valued at AED 1,119,794, in addition to legal interest.In its judgment, the court said the claimant had submitted a declaration of indebtedness bearing the defendant’s signature, in which he acknowledged receiving the amount and undertook to repay it on time, either in digital currency or in UAE dirhams. The court noted that the defendant did not attend any of the hearings and did not submit any defence challenging the validity of the declaration or proving that the debt had been settled, despite being legally notified.The court added that, under the Evidence Law, an acknowledgment constitutes a declaration by one person of a right due to another. It also noted that customary documents carry evidentiary weight when signed by the person to whom they are attributed and are not contested. The court found that the acknowledgment in question met these requirements and that the defendant had provided no evidence to refute it or demonstrate that the debt had been discharged, making the indebtedness legally established.The court further stated that while the presumption is that a person is free of liability, the claimant had successfully proven his claim through the acknowledgment of debt. As a result, the burden shifted to the defendant to prove that the obligation had been extinguished, which did not occur, as the case file contained no evidence of payment or discharge.The court therefore ordered the defendant to pay AED 1,119,794, representing the value of the loan in UAE dirhams, together with legal interest at 5% per annum from the date the claim was filed until full payment is made. The defendant was also ordered to pay the court fees, expenses and attorney’s fees.
