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Victim of Crypto Scam Lost Lawsuit With Bitcoin ATM Firm

The Canadian-based women victimized of a major Bitcoin fraud act has reportedly lost her lawsuit on the 12th of October. The woman wishing to remain anonymous allegedly deposited $48,125 into a BTC ATM as a result of a manipulative telephone scam. The Charlottetown-based Court officially decided the funds legally belong to Instacoin ATM Canada Inc. 


 

Unfortunate Results of Sophisticated Crypto Scams

According to Judge Nancy Orr, the defendant took action based on targeted manipulation of an advanced fraudulent scheme however she was held accountable for her actions. Orr stated the final decision was based on purchasers knowing the implications of their own actions.

According to the lawsuit, the newly migrated individual was made to believe she owed the nation taxes by a telephone scam artist who claimed to be a member of the CRA. The fraudster threatened deportation on the basis of tax fraud if $42,125 was not sent to a digital wallet address through a bitcoin ATM.

CBC News reports stated that the lawsuit was held to determine the legal ownership of the funds deposited. During the hearing, the woman explained that the scammer knew details about herself and her family, and as a newcomer to the country, she was made to believe that threats of deportation or even arrest would be solved if the significant payment was processed.

In order to do so, the Canadian immigrant was forced to withdraw fiat funds from her bank account over a period of several days. Once she acquired the demanded amount, the woman deposited money into a Bitcoin ATM linked to the address the telephone scammer provided.

According to local media reports, the woman explained she desperately needed the funds returned and that she aims to shed light on the sophisticated level of scamming that exits that will continue to terrorize others.

A Rise in Crypto-based Fraudulent Activity in the Nation

The occurrence of bitcoin-related scams within Canada has become an increasing issue. According to local police, over forty individuals were targeted by telephone-based scams accounting to the loss of 300,000 CAD last year. Much like the current incident, targeted victims were forced to take part in crypto deposits under the fear of tax fraud.

In representing Instacoin ATM Canada Inc. during the hearing, Michael Drake made the argument that despite the reasons for deposit, the company was not held accountable for anything other than simply providing the financial service it advertised. The woman was fully responsible for her actions and provided the company with an exact crypto address from which to transfer the funds.

In response to Drake’s claims, Jonathan Coady, representing the defendant, claimed his client only deposited those funds based on the pressure of major threats including arrest and even deportation. Upon final conclusion, Orr explained that although both parties hold sincere sympathy for the implications of scams that had affected this woman, it was not Instacoin that had caused her distress. She noted that anonymity is a significant characteristic of digital assets that allow them to function the way they do, however also presents vulnerability in situations concerning fraudulent activity.


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