Crypto scam: Ontarian loses nearly $500,000

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An Ontario man says he is “devastated” after spending all his life savings on an investment scam he got involved in from a YouTube video he watched.

I am devastated. It ruined me and my savings disappeared,” said Stephen Carr of Meaford, Ontario.

Online investment scams continue to be a huge problem in Canada, and Carr is one of many victims.

According to the Canadian Anti-Fraud Center, 2021 saw $379 million in fraudulent losses in Canada, with the top cause of loss being cryptocurrency fraud.

Carr said he was on YouTube when he saw a video that promised he could make large sums of money trading commodities, foreign currencies and cryptocurrencies.

He said he contacted the company and started with an initial amount of $250 to invest. When that seemed to increase, he invested another $2,500.

At one point, Carr requested a withdrawal of $1,000, which he received and reassured him that the website was legit.

After that, from October 2022 to January 2023, Carr invested her savings of $498,000.

What I didn’t know at the time was that this trading platform I was on was a simulation, it wasn’t connected to anything, like a flight simulator that’s not connected to a real plane, he said.

Carr grew concerned when he thought his funds had grown to 1.3 million and wanted to withdraw from it. But, he was told he would have to pay a liquidation retainer of $150,000 to get his money back.

I got scammed, and in hindsight, I put a ridiculous amount of money into this and a ridiculous trust in these people,” Carr said.

I am devastated. I’m selling my house and I need to reorganize my life. I have maybe two or three months of usable money left, and that’s it.”

Jason Tschetter from Alberta lost $81,000 in a crypto scam last year. Tschetter started Fraud Hunters Canada, a group that tries to support victims and help them get their money back.

https://toronto.ctvnews.ca/canadian-man-out-81-000-after-unknowingly-using-trading-platform-that-was-front-for-thieves-1.5820764?cache=bnbdbzprrissrh%3FautoPlay%3Dtrue

With international borders and limited police resources, this is almost impossible to do.

These criminals have turned this into a real business, and for them, business is booming,” Tschetter said. Unfortunately, the police are short-handed and they don’t have time to track down all the fraud that happens.

Fraud Hunters Canada can help someone who has been caught in an investment scam with resources and advice.

Unfortunately, many people will go through anger, depression, denial. They will even try to negotiate with the criminal, but that just won’t work, Tschetter said.

Carr said when he tried to get his funds back, he encountered other scams.

I’ve spoken to several salvage companies, but many of them are in the same boat and fraudulent themselves,” Carr said.

Carr said he reached out to CTV News Toronto to share his story to help prevent others from getting scammed.

If I can be had, then a lot of other people can be had, and they have all my retirement savings, Carr said.

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