The story of a foreign Ethihad employee in UAE defaulting a crypto loan of $100k spread like wildfire as he posted his story on Reddit a few days ago. As he got the publicity he has received around $27,400 in donations which saved him from facing Jail over the defaulting of loan amount $100,000.
34-year-old non Arab Emirates citizen wrote on Reddit that he took out a $100,000 loan for investing in cryptocurrencies. Reddit user u/Crypthomie posted to the Cryptocurrency subreddit on 19th of June saying that thanks to his ex-coworkers he managed to rais $27,400 in donations towards his mammoth loan.
“Hundreds of websites [wrote] articles on my situation,” u/Crypthomie said.
“Eventually [they] reached my ex-coworkers who figured out who was involved as they knew I was heavy in debt and a crypto enthusiast.”
Can a bank loan lead to jail time?
Cointelegraph reported the above story on the 10th of June that the former flight attendant invested in Bitcoins when it reached its all-time high in December 2017. He defaulted the loan as he lost his job due to the pandemic of the novel coronavirus.
UAE consider debt-related matters as a criminal offense rather than a civil case. He could have faced jail time up to three years for this offense in case he did not come up with the donations.
“At first I started to freak out and got very scared that my bank or the UAE government [would] find out that I made that post and enforce my possible sentence,” he said. “I deleted everything to cover my back but it was too late anyway.”
Donations enough to save him?
Though donations may save the immediate threat of facing jail time Crypthomie still has a long way to go paying off his debt of close of $100k. The same to be paid by the end of 2021.
The goodwill of his former co-workers saved him from covering approximately 25 percent of his total debt. The bank requires a monthly installment of $2,230 giving sometime Crypthomie to breathe and look for alternatives settling the loan.
He says this amount is ample for him to take a breather.
“Their generosity is saving my wife and I big time for a couple of months and we will [be] able to look for a new job but don’t need to worry about jail anymore for now.”
Would you gamble $100K loan money on cryptocurrencies?