Bitcoin scheme leads to financial ruin, legal battle for B.C. men
CBC
An intricate cryptocurrency scheme trading on the name of the purported founder of bitcoin has resulted in a bitter B.C. legal battle between two men who both claim financial ruin.
A B.C. Supreme Court judge weighed into the dispute this week, ordering Daniel Tambosso to cough up $1.2 million — the cash equivalent of the 22 bitcoins Hung Nguyen loaned him in September 2021 for what was supposed to be just 48 hours.
In court documents, Nguyen — a Kelowna real estate agent — said the money "represented the entirety of my personal savings," claiming Tambosso's failure to reimburse him "has had a devastating impact on my personal finances and on my mental health."
Meanwhile, Tambosso — who told the CBC he plans to appeal — claims he has also been left penniless, the victim of an "elaborate scam" that saw him borrow funds from Nguyen as he threw good money after bad in the hopes of unlocking a blockchain wallet worth billions.
"My intentions were genuine, with no desire to misappropriate his bitcoins," Tambosso wrote in an affidavit.
"I had sought assistance from investors to recover my own bitcoins, only to uncover that it was a Ponzi scheme involving compromised and manipulated wallets, with bitcoins demanded within strict time frames, constantly requiring more."
The case may be mired in the complexities of cryptocurrency, but Justice Shelley Fitzpatrick said the underlying legal concept was a matter of simple contract law — calling the situation a "modern twist" on "old-fashioned cause of action and remedy."
In his affidavit. Nguyen detailed the growth of his portfolio starting with small investments in bitcoin and ethereum in April 2017. He took out a line of credit and drew from personal savings to grow a $264,000 investment into $1.18 million worth of cryptocurrency by 2021.
Nguyen said friends introduced him to Tambosso, who explained that "he had significant cryptocurrency holdings and that, in the past, he had encountered bad actors in the cryptocurrency market that scammed or attempted to scam him."
In his version of events, Tambosso claimed he went looking for a "solution to track and recover the misappropriated bitcoin" and came across security recovery software purportedly designed by Satoshi Nakamoto, "the creator of bitcoin."
According to the court documents, the security software could only be accessed in stages, with each stage requiring a fresh payment of bitcoin. Tambosso needed Nguyen's money to make the payments.
"Mr. Tambosso told Mr. Nguyen that the payoff could be huge: if the ... procedure was successful, Mr. Nguyen would receive 1,750 bitcoins as compensation for the loan," Fitzpatrick said.
In her judgment, Fitzpatrick said Satoshi Nakamoto "denies" being the inventor of bitcoin — but she drew no conclusions about the mysterious software developer, whose name is believed to be a pseudonym.
Still, the judge said the mere mention of a man with "cult-like status" in crypto circles "gave Mr. Tambosso's proposition additional credibility."
An RCMP-led corruption investigation is underway into at least one current Calgary city councillor as well as a business, CBC News has learned.
Much of Newfoundland is digging out of a blustery and messy day as another storm slams into the island.
Timiskaming—Cochrane MPP John Vanthof recalls the meeting in Thunder Bay earlier this month. He was part of the nine-day road trip along Highways 11 and 17 with other NDP MPPs.
A bill before the Nova Scotia Legislature is proposing raising the age limit for support for young people who have been in the foster care or group home system to 26.
The Fredericton Police Force has reallocated funds so new staff can be hired this year to better manage evidence after a police error upended murder cases against five people.
One of two pilots killed in a plane crash at New York's LaGuardia Airport Sunday earned his wings at an Ontario college, CBC News has learned.
Air Canada passengers who were aboard Flight 8646 when the CRJ-900 aircraft struck a fire truck upon landing at New York's LaGuardia Airport on Sunday evening say the collision was sudden and forceful, and they may owe their lives to the pilots who died in the incident.
Cardiac services are set to expand at a Winnipeg hospital once regarded as one of the best in Canada for heart care.
A 26-second TikTok video has ignited a larger conversation about vulnerable populations, theft and content creation.
Some family doctors and emergency room physicians working in Edmonton hospitals warn that an April 1 end to stipend pay arrangements could put patient care at risk and increase suffering.
An Auditor General of Canada report has found that B.C. saw drastically fewer international students than was forecast ever since wide-ranging federal immigration cuts began in 2024.
Six years after e-learning became a mandatory requirement to get an Ontario high school diploma, students don't appear to be taking online school to diversify their course selection as the province had intended, according to a CBC News analysis of provincial enrolment data.
Sarnia City Council will hold a special meeting Tuesday morning to respond to social media comments made by Coun. Bill Dennis, who criticized city spending on a new mural by Indigenous artist Kennady Osborne as “virtue signalling by woke politicians” — then made a series of comments in response to a reply from Aamjiwnaang Chief Janelle Nahmabin that some have characterized as unprofessional and aggressive.