Legal Loopholes: The Million-Dollar Bitcoin Heist
What happens when a sophisticated scammer steals over half a million dollars in Bitcoin through a phone company’s security failure? And more importantly, can you even take them to court?
The answer is more complicated than you might think, as we explore in this eye-opening legal examination of consumer rights in the digital age. A British Columbia resident fell victim to an elaborate fraud when someone impersonated a Rogers technician, convinced a retail employee to enable screen sharing, and accessed the Rogers customer database. After extracting personal information, the scammer performed a SIM swap and drained the victim’s cryptocurrency account, assets that later appreciated to a staggering one million dollars.
When the victim attempted to sue Rogers, they encountered the hidden trap of arbitration clauses—those pages of legalese we all scroll through and accept without reading when setting up our services. Despite recent changes to BC consumer protection laws specifically banning these clauses, the court ruled in favor of Rogers on a fascinating technicality involving “retroactive” versus “retrospective” legislation. We break down this crucial distinction and explore how legislative language can determine whether consumers have access to justice.
The episode also examines a compelling Vancouver assault case that showcases the notorious unreliability of eyewitness identification. Despite a police officer’s “100% certainty” about identifying a suspect from security footage, the court wasn’t convinced, particularly when the officer failed to notice the suspect’s distinctive “benzo gait,” a hunched walking style common among drug users in the Downtown Eastside. This case provides a powerful reminder of why confident witnesses don’t necessarily make reliable ones.
Whether you’re concerned about protecting your digital assets or fascinated by the evolving landscape of consumer rights, this discussion offers valuable insights into how our legal system struggles to keep pace with technological change. Have you read the fine print in your service agreements? After hearing this, you might want to.
Legally Speaking with Michael Mulligan is live on CFAX 1070 every Thursday at 12:30 p.m. It’s also available on Apple Podcasts or wherever you get your podcasts.