A Canadian startup known for manufacturing Bitcoin Automated Teller Machines, Instacoin ATM Canada, has finally got a break from a fraud allegation by a user who was defrauded. A court of competent jurisdiction in Canada has ruled in favour of the Bitcoin ATM firm stating that the firm is not responsible for the loss of the victim.
According to the Canadian Broadcasting Corporation, the plaintiff, whose name was not disclosed, sued Instacoin ATM Canada in order recover C$62,500 which she has sent to a scammer who fraudulently misrepresented himself as Canada Revenue Agency (CRA) and while the victim resumed she was filling her taxes she sent the money to this rogue.
The rule was delivered in a ruling which took place in Canada’s Prince Edward Island Province, where Chief Provincial Judge Nancy Orr explained that the terms of contract that existed between Instacoin ATM Canada and its users was for purchase of exchanging cash for bitcoin implies that the act of sending her funds to tax body was not part of contract. Apparently, the firm owes no duty of care here.
Crypto Users Should Be Aware
The judge further admonished crypto holders to be devoid of ignorance of this sector so as to know their rights, duties, and responsibilities;
“Both sides involved in this case are completely sympathetic to the woman. It’s up to the bitcoin purchaser to know what they’re doing,”
According to the victim’s testimony, the major reason why she fell for this scam was that the state machinery, which has been facilitating taxes over the years, was heavy-handed and was very familiar with that of the rogue, therefore; she tried not to be on the wrong side with the state. The plaintiff’s counsel further argued that the victim acted under duress, however, Judge Orr was swift to point out that “Instacoin did not put her under duress” and even her state of mind was unknown to the firm.
Not a Canada-centric Problem
This is not the first of this kind of fraudulent activity and it is also not restricted to Canada alone. Recently, a similar occurrence was experienced in Australia, where some citizens were defrauded under the disguise of the Australian Taxation Office. This pushed tax body to issue a warning that it does not accept taxes via Bitcoin, however, the act persisted. The body recorded about AU$ 50,000 and considering the fact that many other victims might not report, the amount that went to these rogues might be higher.