Victim of Crypto Fraud in Canada Gets Most Money Back!
• A fraud victim in Winnipeg, Canada lost more than $168,000 to a digital currency scam.
• Police were able to intervene and return about $155,000 of the stolen funds.
• The incident occurred after the collapse of FTX, one of the world’s top digital currency trading enterprises.
Victim Lost Money in Digital Currency Scam
A fraud victim in Winnipeg, Canada has lost more than $168,000 to a digital currency scam. The loss occurred sometime last October when the person was directed to purchase crypto for over three months without their knowledge.
Police Intervened To Get Funds Back
Despite most crypto being gone for good once it is stolen, police utilized certain techniques to trace crypto assets as they moved and were able to return about $155,000 of the stolen funds back to the original owner. Constable Dani McKinnon from the public information office in Winnipeg explained: „Police utilize certain techniques to trace crypto assets as they are moved. In some cases, the timely tracking of crypto assets can identify opportunities for law enforcement intervention.“
FTX Collapse Led To Fraud
The incident follows the collapse of FTX, arguably one of the biggest embarrassments ever hit by digital currency arena. Once one of the world’s top digital currency trading enterprises, FTX hit a real snag last November when its founder and chief executive Sam Bankman-Fried said that it was suddenly in need of fast cash and experiencing a liquidity crunch.
Bankman-Fried Awaiting Trial
After failing to instigate a buyout with his rival Binance and entering bankruptcy shortly after resigning from his post due to misusing customer funds for personal gain such as purchasing real estate and paying off loans for his other company Alameda Research; Bankman-Fried is now awaiting trial.
Canada Working on Regulations
Canada is eager to end all crypto fraud and implement strict regulatory tactics following this incident as well as others like it involving FTX. The country hopes that these regulations will protect potential victims from becoming fraud victims by offering federal offerings such as FDIC or anything similar within the mix designed to protect traders from falling prey again in future cases like these.