Canadian Police Seeks Public Help with Multiple Bitcoin Frauds: 4 Suspects Wanted

  • Canadian Police Seeks Public Help with Multiple Bitcoin Frauds: 4 Suspects Wanted

Canadian Police Seeks Public Help with Multiple Bitcoin Frauds: 4 Suspects Wanted

Calgary police are looking for four suspects in connection to a national investigation into bitcoin fraud that resulted in a loss of nearly $200,000 to a Canadian company. The four suspects are believed to have made a total of 112 fraudulent transactions in Calgary, Toronto, Ottawa, Winnipeg, Hamilton, Sherwood Park, and other locations.

Cybercrime Team (CPS) is investigating a series of fraudulent crimes with Bitcoin ATMs that resulted in the Canadian blockchain company incurring a loss of 195,000 Canadian dollars (approximately 146,000 U.S. dollars). According to a report in Canadian news publication CBC, just less than half the attacks on Bitcoin ATMs took place in Calgary.

Police say the suspects were committing "double-spend" attacks and would visit a bitcoin kiosk and successfully withdraw money before cancelling their transaction before the bitcoin company would process the withdrawal.

"Authorities believe the individuals have n-depth knowledge or interest in cryptocurrency, bitcoin and/or blockchain technology". The cities which fell victim to the attack include Calgary, Toronto, Montreal, Winnipeg, Sherwood Park, Ottawa and Hamilton.

Four scammers wanted for conducting double spending attacks in Bitcoin ATMs from major cities in Canada.

The scam has been made possible through 0-confirmation transactions at the ATMs, enabling double spending while forcing merchants to wait for confirmation.

The attacks were carried out at a point that the Bitcoin ATMs accepted zero-confirmation transactions. While it was not created to facilitate theft, the tool lets "stuck" transactions to become released for the cost of an extra fee. The second double-spends that transaction with a transaction with higher fees, paying only the change address.

Per Todd, it also allows users to "optionally specify that the first transaction additional OP-RETURN, multisig, and "blacklisted" address outputs". Those with information on the case can submit anonymous tips.