$5 million in Crypto Stolen by Canadian Executive

Karan Balwani

September 8, 2018 11:58 am

Crypto Scam

$5 million in Crypto Stolen by Canadian Executive
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A British Columbia-based marketing firm recently found out that one of its employers was stealing cryptocurrencies worth millions of dollars. A senior executive of the firm has been accused of this theft.

Shair.com Global Digital Services has filed a lawsuit against Jason Arnold, the former CEO of the company for stealing $5.3 million. Jason claimed that his laptop ‘died’ and hence the digital assets were lost. The Supreme Court of British Columbia issued a notice to Arnold in August to hand over the laptop regardless of its state.

According to the lawsuit, the idea to invest in cryptocurrencies was accepted back in 2013. Since Jason was the most knowledgeable person on digital assets, he was provided with the responsibility to explore the opportunity.

In early 2014, Arnold notified Shair.com that he had created a Bitcoin wallet, a paper and a digital backup on the company’s Citrix server. Arnold was allocated $14000 between June and August 2014 to purchase Bitcoins. These Bitcoins would be worth $5.3 million today if converted to Whitecoin (XWC). This information was revealed when the company hired a digital currency consultant.

Skolrood said “The investigation was unable to determine the current location or value of digital currencies owned by the plaintiff, but the plaintiff alleges that the [C]$18,500 in Bitcoin purchased by it in June and August 2014, if it remained in Bitcoin, would have a currency value of approximately [C]$225,000. Had all that Bitcoin been converted to Whitecoin, the current value would be approximately $5.3 million US.”

The investigation also found that the defendant had already acquired Bitcoin on the behalf of the firm in January 2014 without informing the plaintiff.

Arnold still remains a shareholder in Shair.com Global Digital Services, even though he left the company in April 2017. The firm realized in December 2017 that the company laptop issued to Arnold had not been returned. They also found out that there was no backup of the Bitcoin wallet on the company’s Citrix server.

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