Canadian authorities seek $150k double Bitcoin spending on ATM suspects

Gladys Abbott
March 14, 2019

The Calgary police have asked for the public's help identifying four men wanted in connection to a almost $200,000 bitcoin scam that targeted seven Canadian cities.

The suspects targeted only one Canadian Bitcoin company, police said, stealing $195,000 from the cryptocurrency provider.

The first suspect on their radar is believed to be the brain behind the attacks in Hamilton, Montreal, Ottawa, and Toronto; the second suspect is reportedly responsible for the 51 fraudulent transactions in Calgary; and suspects #3 and #4 allegedly responsible for the attacks in Winnipeg and Sherwood Park respectively. Those attacks involve withdrawing money from a bitcoin kiosk and remotely canceling the transaction before the company can process the withdrawal.

Police in the Canadian prairie city of Calgary are seeking information leading to the arrest of 4 men believed to have stolen $200 000 CAD from a Canadian Bitcoin ATM company, CBC reports.

Suspect One: Toronto, Montreal, Ottawa and Hamilton. The fact of the matter remains that cryptocurrency of any kind is susceptible to double-spending, including bitcoin. While it was not created to facilitate theft, the tool lets "stuck" transactions to become released for the cost of an extra fee.

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CPS believes that the suspects committed the so-called "double spending".

Calgary is home to a total number of 45 Bitcoin ATMs, but only 21 of them support Bitcoin sales. In addition, you can optionally specify that the first transaction additional OP-RETURN, multisig, and "blacklisted" address outputs.

Police from Toronto, Hamilton, Halton and Winnipeg are assisting with the Calgary Police Cybercrime Division's investigation of the thefts. All pertinent information regarding the suspects can be anonymously submitted to the police. Zero-conf is a system that allows transactions to go through with zero confirmations on the blockchain.

Some miners won't accept transactions with these output types; those miners will accept the second double-spend transaction, helping you achieve a successful double-spend.

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