Canadian bank seizes $ 3,000 from account of scam victim to reimburse itself

Justin Smith, a resident of Toronto, had his bank debited $ 3,000 from his account without his consent.

The “right of set-off” is the little-known banking principle applied by Bitcoin Circuit, which effectively gives ownership of all depositors‘ funds to the bank.

By using this clause in the bank’s T & Cs, the bank is able to legally recover all the debts owed to it

Scotiabank of Canada recovered $ 3,000 (CAD) from one of its clients‘ accounts after being the victim of a recruiting scam.

Justin Smith of Toronto, who is a long-time customer of Tangerine – the online affiliate of Scotiabank – opened up about his ordeal with the bank in a story that illustrates the pitfalls of trust banking versus cryptocurrency.

CBC News reported that Smith was recently the victim of a sophisticated recruiting scam that saw him inadvertently deposit a bogus check worth $ 3,000.

A Toronto man was the victim of an employment scam, but was even more shocked when his bank, Tangerine, took about $ 3,000 from his account to make up for what she had lost to the fraudsters.

When Smith realized he had been duped and informed the bank of the problem, the bank invoked a little-known clause in its Terms of Service to deduct the amount from a separate account.

Smith’s Fraud Nightmare

The problems started when Mr Smith was contacted by scammers who set up an elaborate plan to make him believe he had landed a home data entry position at retail company Sobey’s.

He was given a seemingly convincing employment contract, a check for $ 3,495 and the instruction to pay $ 3,000 to a company called Tech Insight Services, apparently to supply the equipment.

When Smith deposited the check, it seemed genuine enough to deceive even the bank, which credited his account with the amount. Smith then sent the requested $ 3,000 payment to the crooks, unaware he was being cheated. He then received another demand for payment of $ 3,500, which set off an alarm in his head. He contacted the bank to inform them of his suspicions, but it was too late at this point for the bank to reverse the $ 3,000 transfer.

It was then, Smith says, that Tangerine asked him to cover the $ 3,000 with money from his other accounts at the bank. He refused to do so, and the bank took the money anyway, debiting his $ 3,000 tax-exempt account without his consent.

Riot Blockchain reports show revenue increase in third quarter

Riot Blockchain reported an increase in revenue in the third quarter after mining 222 bitcoins during the three months

Riot Blockchain, a publicly traded bitcoin mining company, revealed an increase in revenues during the previous quarter. The company released its earnings yesterday from July to September.

According to its earnings report, Riot Blockchain generated $2.4 million in mining revenues during the third quarter of the year. This represents an increase of 42% over the same period last year. The increase in the company’s hash power, combined with the 15% increase in Bitcoin’s price during the third quarter, were the main reasons behind Riot Blockchain’s revenue increase.

Although its mining capacity has been reduced from the previous quarter (QoQ), it has increased on an annual basis (YoY). In the second quarter of 2020, Riot Blockchain extracted 227 bitcoins. However, the figure fell to 222 Bitcoins during the last quarter. Despite the quarterly drop, the 222 bitcoins extracted by the company are 41% higher than in the same quarter of last year.

Last year’s increase in Bitcoin mining capacity Bitcoin Up may be due to its decisions to focus exclusively on Bitcoin mining. Previously, Riot Blockchain also mined Litecoin and Bitcoin Cash in addition to Bitcoin.

In addition, Riot Blockchain has also increased its mining capacity in the last three months. Currently, the company’s mining capacity is 556 Peta hash per second (PH/s), which is in line with its expectations. The current hash output is 450% higher than the 101 PH/s recorded during the third quarter of 2019.

Riot to expand mining operations
The company plans to expand its mining operations. According to the profit report, Riot is acquiring new Bitmain machines. Riot said, „As previously reported, the company has recently entered into four additional purchase contracts with Bitmain for the acquisition of 16,600 models (110 TH/s) S19-Pro Antminers for an aggregate purchase price of $37.2 million, payable in instalments. The company expects delivery of the first 3,500 of these new miners in the fourth quarter of 2020, with the remaining 13,100 miners to be delivered in monthly instalments from the first half of 2021“.

Riot expects the incremental delivery and deployment of its new 16,600 machines by the end of the second quarter of next year.

Riot Blockchain and other mining companies have benefited from the boom in the cryptomino market this year. Bitcoin has risen 114% so far this year, with leading cryptomoeda now trading above $15,000.