Iowa Supreme Court Rules Against Bitcoin Scam Victims
The Iowa Supreme Court has made a landmark decision, ruling that victims of a bitcoin ATM scam cannot reclaim their lost funds. This case highlights the risks associated with cryptocurrency transactions and the importance of vigilance.
The Case of Carrie Carlson
Carrie Carlson deposited $14,100 into a Bitcoin ATM in Cedar Rapids after receiving a call claiming her accounts were compromised. Despite a warning from the ATM about the necessity of depositing bitcoin into a wallet she owned, Carlson proceeded to transfer the funds to an external wallet, falling victim to a scam.
The Linn County Sheriff’s Office seized the cash during their investigation. However, the Supreme Court ruled that Bitcoin Depot, the ATM operator, had no reason to suspect Carlson was being scammed. The court also stated that the contract between Carlson and Bitcoin Depot was not voidable, ordering the seized cash to be returned to the company.
A Similar Case: Shelby Cason
In a nearly identical case, Shelby Cason deposited $14,800 into a Bitcoin ATM located inside Hawks Smoke Shop in Marion, transferring it to a wallet he did not own. The Supreme Court similarly ruled that the bitcoin company should receive the cash seized during the investigation.
These rulings underscore the irreversible nature of cryptocurrency transactions and the critical need for users to verify wallet ownership before transferring funds.
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