The Crypto Scheme

The following story is based on actual events. Names, locations and timelines may have changed to protect the victim’s identity.

This story began in July 2023, when Jade, a retiree, started a $250 investment with Quantum AI. She was then contacted by a man named Joseph, using a WhatsApp business number and then a fake @iiroc.net email address, who falsely claimed he worked with the Investment Industry Regulatory Organization of Canada (IIROC).

Joseph convinced Jade to allow him to connect to her computer through software called “Any Desk” and helped her to open multiple crypto wallets, including Bitbuy and CoinSmart. Jade then proceeded to deposit all the money from her TFSA and retirement savings in the crypto wallets.

Recovery Scam

Later, Joseph, pretending to assist Jade, alerted her that someone had been making withdrawals from her wallets. Joseph lied when he assured her that the money was being withdrawn by unauthorized parties and tried to explain Blockchain technology to her. Joseph also told Jade he didn’t want any money.

Jade was then contacted multiple times by another fraudster and told to eTransfer money to them so that they could release the stolen funds. In order to meet these ever-increasing requirements, Jade maxed out her credit cards and borrowed money from friends in an attempt to recover the stolen funds.

Jade lost approximately $150,000. These losses caused emotional distress, and Jade lost weight, as she struggled to hide what happened from her family and friends.

After she had run out of money, Jade eventually decided to come forward to prevent others from falling victim to similar schemes. Jade contacted IIROC, who denied any association with Joseph, and she shared the sad story of what had happened to her.

Don't Become a Victim

Had Jade checked Quantum AI’s registration and disciplinary history, she would have discovered that Quantum AI was not registered and that the Ontario Securities Commission had issued an Investor Warning Alert on May 20, 2022.

Jade's story serves as a stark reminder of the dangers posed by fraudulent crypto schemes and the importance of checking whether the person or company you are dealing with is registered before selecting a financial advisor or platform.

Learn how to protect yourself from frauds and scams.