It was billed as the “panda revolution” of the crypto world. Bao Bao Panda, a meme coin with a grinning mascot, viral internet hype, and AI-driven investing, claimed it would change fortunes “one paw-step at a time.”
Instead, it left a Dubai-based Indian businessman with a $600,491 hole (Dh2.2 million) in his account and on the trail of a scam now under investigation by Dubai Police.
Al Riffa Police have registered a fraud case against an Indian man for posing as a licensed virtual asset trader. The suspect allegedly convinced the victim to exchange $600,491 worth of USDT tokens for Bao Bao Panda, promising the meme coin’s value would double.
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A police certificate submitted to the public prosecutor and shared with the businessman confirms the case details. Investigators found the accused had no license to trade digital assets in the UAE, violating anti-money laundering laws and federal virtual asset regulations. Authorities have issued a circular to locate the suspect, who reportedly fled the country in April.
“This is not how it was supposed to be,” the businessman told Khaleej Times, recalling the nearly 60 cryptocurrency transfers he made. The coin’s white paper seen by Khaleej Times promised global contests, virtual panda races, and even wildlife conservation. “What I got was a police file, a forensic audit, and a dead-end crypto trail.”
He claims an Indian politician and his son introduced him to the suspect during a Dubai visit. “They told me, ‘We guarantee your money,’” he said. “It sounded convincing then. Now, I see it was all a carefully crafted illusion.”
According to him, the politician and his son claimed to invest $50,000 of their own in Bao Bao Panda, a supposed show of faith that he alleges was simply a circular transaction looping back to them.
For nearly four months after the token’s launch, the suspect allegedly kept up the façade: sending updates, discussing marketing plans, and vowing listings on major exchanges. Behind the scenes, the businessman alleges, he urged others to buy in, then dumped his own holdings from anonymous wallets each time prices rose.
Meme coins are cryptocurrencies inspired by internet jokes or trends (eg: Dogecoin, Shiba Inu), typically with no real-world utility. Their value depends entirely on hype, making them prime targets for speculation and fraud.
In February, Dubai’s Virtual Assets Regulatory Authority (VARA) issued an alert warning that meme coins are unregulated and highly speculative, often lacking intrinsic value and vulnerable to manipulation through social media hype. It urged investors to be wary of anyone promising guaranteed or outsized returns and reminded the public that all virtual-asset promotions in Dubai must follow its marketing and issuance rules.
Mazhar Farooqui
Mazhar Farooqui, or Maz, is a multiple award-winning investigative journalist and Senior Editor at Khaleej Times. Renowned for exposing corruption and uncovering major scams, he is also the author of The Maz Files: Scoops, Scams & Showdowns.