A Thai transgender prostitute has been arrested for allegedly stealing from and blackmailing a Danish tourist who refused to tip her.

Sit, who also goes by Alda, 30, had met the Danish businessman, 78, through a notorious dating app - popular with people seeking reckless sex - while he was on a work trip in Bangkok.

The pair had agreed to meet at a hotel restaurant to eat on August 19, then had sex for two hours after. But while the tourist was fast asleep, Alda took off with his phone, wallet, and credit card all worth 40,000 THB (1,143 USD).

When police caught the transgender prostitute, the kind Danish man decided to forgive her and departed for his home country.

However, Alda then allegedly continued to pester him, demanding 35,000 THB (1,000 USD) to buy her silence about his sexual preferences.

The Danish man laughed off her threats because he 'didn't care' about who knew his peccadilloes.

He then reported the suspect to Thai authorities through their online channels. Police launched a search and arrested Alda in her home in Bangkok's Din Daeng district on August 29.

This time, the Dane told police he wanted her to be punished.

She reportedly admitted to the crimes, saying she was angry because the Danish tourist had sex with her five times without giving any tip. She said she had used his credit card to buy a laptop, while she had sold his phone to her friend.

The ladyboy - a culturally accepted term a man who undergoes surgery to give them the appearance of a woman - was made to apologise to the victim through an online video chat. She said she regretted her actions that reflected poorly on the country.

Meanwhile, the Danish man said he was unafraid of Alda's threats since his friends and relatives were already aware of his fetishes.

He said he loved Thailand, and had often visited in the past eight years, each time enjoying the company of local transgender people.

Police said that they have released the sex worker on bail after she agreed to repay the cost of the stolen equipment.