- An investor in British Columbia lost approximately $480,000 to an online crypto scam.
- The cryptocurrency exchange NDAX Canada issued four separate warnings about potential fraud before processing the transaction.
- A BC Supreme Court judge ruled that NDAX Canada was not liable for the investor’s losses.
- The investor ignored repeated alerts and insisted the exchange release funds for Ethereum purchases.
- The decision coincides with increased Canadian enforcement on crypto platforms for compliance and security failures.
A British Columbia court ruled that NDAX Canada, a Calgary-based cryptocurrency exchange, was not responsible for an investor’s loss of about $480,000 to a fraud scheme. The judgment by Justice Lindsay LeBlanc was issued on Monday and dismissed a claim filed by a Victoria resident named Yan Li Xu.
Court records show Xu opened an account with NDAX in April 2023 after an online contact convinced her to join a scheme promising daily returns of up to 1%. She then deposited approximately C$671,000 (around $480,000) into her account by mid-May and purchased Ethereum cryptocurrency.
NDAX Canada issued four escalating warnings to Xu about the risk of fraud. On April 18, an employee contacted her, warning that the withdrawal transaction exhibited risk factors and was under review. The exchange also sent formal risk disclosures and confirmation notices, and a compliance officer directly warned Xu she was likely being scammed. Despite these warnings, Xu repeatedly demanded the exchange process her withdrawal promptly.
Following her instructions, NDAX ultimately transferred the Ethereum to an external wallet controlled by the scammer. The court noted that while the loss was unfortunate, the exchange fulfilled its obligations and its warnings “could not have been clearer.” Xu’s insistence and decision to proceed against advice led to the loss.
This ruling comes amid heightened scrutiny in Canada over cryptocurrency platforms and their regulatory compliance. Recently, Canadian authorities fined a Vancouver-based crypto firm a record C$176.9 million for breaching anti-money laundering laws, involving unreported transactions linked to criminal activities.
The full judgment is available here.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- Trump Admin Considers Loans, Not Equity, for Quantum Firms: Report
- Trump Pardons Binance Founder CZ, Backs Crypto Expansion Efforts
- Wall Street Anticipates Recovery After Recent Decline
- OpenAI Acquires Startup Founded by Ex-Apple Staff to Boost ChatGPT
- Crypto Rally Boosted by Trump Pardon of Binance Founder CZ
