The rightful owner of nearly $15,000 in cash that was deposited into a bitcoin machine in exchange for the cryptocurrency is in dispute after a Coggon man reported he was a victim of fraud when an alleged scammer threatened him and told him to deposit the money in exchange for bitcoins.
Shelby Cason, 69, asked the court Wednesday to return his $14,800 found by Linn County Sheriff’s investigators in July after he reported he deposited that amount in the bitcoin machine at Hawks Smoke Shop, 1396 Seventh Ave. in Marion.
Lawyers for the bitcoin machine, Bitcoin Depot Operating, LLC., during the hearing, argued once the money was deposited and Cason received $14,800 in bitcoin, the money belongs to the company.
According to court documents, in July, Cason received a pop up warning on Facebook telling him his computer had been hacked and told him to call a number, which he did. The alleged scammer then told him to withdraw $14,800 from his bank and deposit it in a bitcoin machine in Marion.
The alleged scammer accused Cason of having child pornography on his computer and said if Cason didn’t deposit the money and turn over the cryptocurrency to him, Cason would be turned in to the FBI.
Cason deposited $14,800 — all $100 bills — into the machine and had a receipt for the transaction, according to the investigator’s report. Cason then received bitcoin for that amount and also had a receipt for that transaction.
Later, Cason realized he had been scammed after talking with a neighbor.
On July 31, Linn County Sheriff’s Lt. Dave Beuter obtained a search warrant for the bitcoin machine because he believed the machine hadn’t been emptied and likely contained Cason’s money, according to court documents. Rochester Armored Services, who had the account for this bitcoin machine, opened the machine for law enforcement, and Cason’s money was found inside.
According to the report, the money was hand counted for accuracy and a receipt from the machine and from Rochester Armored also were obtained as part of the investigation. A property receipt from the sheriff’s department was given to Rochester Armored.
The bitcoin machine was secured to the floor, so investigators couldn’t seize it, the report stated. Instead, photos were taken of the machine and money.
Cason filed a motion to have his seized money returned to him, and Bitcoin Depot also filed a motion to have the court determine who is the rightful owner of the money.
During the hearing, Assistant Linn County Attorney Elena Wolford argued the investigation remains open regarding the fraud case and if a civil or criminal action was filed, the money would be evidence.
Wolford, representing the sheriff’s office, said according to the law the money should go back to Cason.
Cason, during the hearing, told 6th Judicial District Judge Ian Thornhill that he had a stroke shortly before this incident happened and he was on medication at the time. Cason said his friend was named his power of attorney, since the stroke, and attended the hearing.
Kevin Collins, lawyer for Bitcoin Depot, argued that cash taken from the machine isn’t evidence of a fraudulent scheme. Cason deposited money and he received $14,800 in bitcoin and then Cason took the bitcoin and gave it to another person. That isn’t the responsibility of or fraud by Bitcoin Depot.
The moment the funds were deposited in the machine, it became property of Bitcoin Depot, Collins said.
It’s unfortunate “crooks” have used cryptocurrency in this way but it’s not the bitcoin company’s fault, he added.
Collins said Cason gave the money to a person who turned out to be a scammer. Nobody hacked into his bitcoin account and gave it to scammers.
Thornhill said he would provide a written ruling at a later time.
www.thegazette.com
Shelby Cason, 69, asked the court Wednesday to return his $14,800 found by Linn County Sheriff’s investigators in July after he reported he deposited that amount in the bitcoin machine at Hawks Smoke Shop, 1396 Seventh Ave. in Marion.
Lawyers for the bitcoin machine, Bitcoin Depot Operating, LLC., during the hearing, argued once the money was deposited and Cason received $14,800 in bitcoin, the money belongs to the company.
According to court documents, in July, Cason received a pop up warning on Facebook telling him his computer had been hacked and told him to call a number, which he did. The alleged scammer then told him to withdraw $14,800 from his bank and deposit it in a bitcoin machine in Marion.
The alleged scammer accused Cason of having child pornography on his computer and said if Cason didn’t deposit the money and turn over the cryptocurrency to him, Cason would be turned in to the FBI.
Cason deposited $14,800 — all $100 bills — into the machine and had a receipt for the transaction, according to the investigator’s report. Cason then received bitcoin for that amount and also had a receipt for that transaction.
Later, Cason realized he had been scammed after talking with a neighbor.
On July 31, Linn County Sheriff’s Lt. Dave Beuter obtained a search warrant for the bitcoin machine because he believed the machine hadn’t been emptied and likely contained Cason’s money, according to court documents. Rochester Armored Services, who had the account for this bitcoin machine, opened the machine for law enforcement, and Cason’s money was found inside.
According to the report, the money was hand counted for accuracy and a receipt from the machine and from Rochester Armored also were obtained as part of the investigation. A property receipt from the sheriff’s department was given to Rochester Armored.
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The bitcoin machine was secured to the floor, so investigators couldn’t seize it, the report stated. Instead, photos were taken of the machine and money.
Cason filed a motion to have his seized money returned to him, and Bitcoin Depot also filed a motion to have the court determine who is the rightful owner of the money.
During the hearing, Assistant Linn County Attorney Elena Wolford argued the investigation remains open regarding the fraud case and if a civil or criminal action was filed, the money would be evidence.
Wolford, representing the sheriff’s office, said according to the law the money should go back to Cason.
Cason, during the hearing, told 6th Judicial District Judge Ian Thornhill that he had a stroke shortly before this incident happened and he was on medication at the time. Cason said his friend was named his power of attorney, since the stroke, and attended the hearing.
Kevin Collins, lawyer for Bitcoin Depot, argued that cash taken from the machine isn’t evidence of a fraudulent scheme. Cason deposited money and he received $14,800 in bitcoin and then Cason took the bitcoin and gave it to another person. That isn’t the responsibility of or fraud by Bitcoin Depot.
The moment the funds were deposited in the machine, it became property of Bitcoin Depot, Collins said.
It’s unfortunate “crooks” have used cryptocurrency in this way but it’s not the bitcoin company’s fault, he added.
Collins said Cason gave the money to a person who turned out to be a scammer. Nobody hacked into his bitcoin account and gave it to scammers.
Thornhill said he would provide a written ruling at a later time.
Judge to decide rightful owner of $14,800 cash involved in possible fraud case
A Coggon man said he deposited cash into a bitcoin machine and gave the bitcoin to a person who threatened him. Now, he wants his cash back after finding out it was a scam.
www.thegazette.com
