Why I’m suing TD Canada Trust for 20.123 BTC
Alex Millar
12

First, you didn’t do your due diligence and you should have researched the risks in taking third party deposits. This is irrespective of bitcoin or what type of bank you use.

There are risks with taking certain forms of payments. Cheques can bounce. Credit cards can be charged back. Wires can be sent to the wrong account. Bitcoin is not reversible and/or can be sent to the wrong address. Researching these risks before using the form of payment is good sense, especially when we are talking thousands of dollars here.

A third party deposit in itself from one person isn’t really a red flag compared to all the scenarios FINTRAC considers (terrorism/money laundering/large cash transactions) so it’s a stretch to be considered “suspicious”. Perhaps if you had multiple deposits from different people around the country. But one person? Nope. Technically anything could be written up as “suspicious” anyway, and that list on FINTRAC are just examples, not hard rules.

There’s also a wrinkle here because if you are arguing that a third party making multiple deposits into your account is “suspicious”, then it leads to the question – how did this scenario even become possible?

You made it possible by giving your account information out, and enabling someone to make these “suspicious” transactions on your account. Transactions that you were perfectly willing to accept – multiple third party deposits, and these deposits were supposed to be cash (which is a bigger flag for banks).

The irony is if the funds were legit cash and you were not scammed then you would not want the transactions considered as “suspicious” and the bank to look the other way. Not likely.

But because the transactions you are responsible in enabling actually are part of a scam against you, you are arguing that they should be considered “suspicious”.

You can’t have it both ways. Either the transactions are “suspicious”, in which case you shouldn’t have enabled them in the first place (which is a breach of contract with the bank and your responsibility), or they aren’t, in which case the bank isn’t responsible for flagging these transactions as odd, and it was your responsibility to do due diligence on the depositor and verify that he did deposit valid funds.