Maria Elvira Pinto Exposto, 54, was on her way to Melbourne when authorities found more than a kilo (2.2 pounds) of crystal meth sewn inside the lining of her bag at the Kuala Lumpur airport in 2014, The Guardian reported.
Exposto had said she went to Shanghai to meet a USA serviceman with whom she had an online romance, and had been asked to carry a bag full of clothes.
Customs officers discovered the drugs stitched into a compartment of her backpack, after she went through customs under the impression that she had "nothing to hide", says her lawyer.
In a unanimous verdict, all three court of appeal judges ruled that the merits of the appeal were valid and found Exposto guilty, with the only sentence under law being death by hanging.
"I don't think she probably even knew what ice was, to be honest", she said. Her lawyers reveal how she initially travelled to Shanghai in order to file documents related to her boyfriend's retirement from service with the U.S. Army.
Maria Elvira Pinto Exposto was escorted by police during a court hearing in Malaysia in December, where she was exonerated of drug smuggling charges.
"I wish you good luck", he said in giving the unanimous ruling.
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The High Court in Malaysia apparently agreed and had acquitted her in December. He said they would be appealing in the federal court. When Westerners are caught by the laws, officials in the region say, they can not expect a double standard to apply.
"She was tricked into carrying the bag because of what we now call the internet scam, internet romance", her lawyer, Shafee Abdullah, told Australia's ABC.
Despite the backlash, Malaysia hanged another Australian heroin smuggler in 1993.
"Australia opposes the death penalty in all circumstances for all people", Foreign Minister Julie Bishop said in a statement to CNN.
Last year, Malaysian lawmakers voted to abolish mandatory death sentences for drug offenses and did not execute anyone for drug-related offenses that year, according to Harm Reduction International, a nongovernmental organization partly funded by the European Union that tracks death-penalty laws for drug offenses globally.
According to the Cornell Center on the Death Penalty Worldwide, the country carried out four executions in 2017, down from nine the year before.