Judge Rules Instacoin ATM Canada is Not Liable for Bitcoin Vending Machine Scam Losses
An important Canadian Bitcoin ATM company will not have to compensate a victim that was damaged by a scam. The victim decided to sue the Bitcoin ATM Firm after sending C$62,500 ($4764 US Dollars) to fraudsters using a crypto ATM:
The victim, a woman whose name has been protected, thought that she was sending cryptocurrencies to the Canada Revenue Agency (CRA) to pay taxes. The information has been released by the Canadian Broadcasting Corporation.
The Chief Provincial Judge Nancy Orr ruled that the women and Instacoin ATM Canada had a contract to exchange cash for Bitcoin. The ATM company was not pretended to send funds to the tax body of the country.
Additionally, the judge said that cryptocurrency users should take responsibility for what they purchase since transactions on the blockchain are not reversible.
About it, the judge explained.
“Both sides involved in this case are completely sympathetic to the women. It’s up to the bitcoin purchaser to know what they’re doing.”
Scammers contacted the victim saying that they were CRA officials. They went on explaining that she made false claims on her tax filings. Due to the fact that the woman was an Iranian immigrant to Canada, the scammers threatened to deport her unless she paid the taxes in Bitcoin.
In order to send the funds, the woman went to a pizza restaurant in Charlottetown. From the Bitcoin ATM located there, she sent almost $4,800 dollars to the fraudsters paying in BTC. The Judge said that Instacoin did not puer her under ‘duress’ and that the company was not aware of her situation.
Scams in the cryptocurrency market have been growing during the last years. Since virtual currencies became so popular, an important number of new individuals all over the world are using them.
Scammers using Bitcoin ATM machines have been targeting several users in many different countries. In Australia, for example, the country’s taxman issued a warning in which it explained that the Australian Taxation Office does not accept tax debts to be paid in BTC.
The website CoinATMRadar, which provides very useful information about Bitcoin ATMs around the world, has a warning on its site that says that users should be careful if they are asked to send funds using a Bitcoin ATM.