In October 2018, the Calgary police's cybercrime team's investigation began when officers were tipped off to a major fraud involving transactions that target a Canadian bitcoin company, according to the Toronto police.
Just under half of the transactions occurred in Calgary.
The four suspects in the Canadian Bitcoin ATM scam are believed to have figured out of a way to cancel transactions before they were fully processed by the provider of the units.
Police say the male suspects may have in-depth knowledge or interest in cryptocurrency, bitcoin and/or blockchain technology. Though the identities of the perpetrators are not now known, the Calgary police are requesting the public's help in identifying them.
Suspect One: Toronto, Montreal, Ottawa and Hamilton.
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0-conf transactions are instantaneous; once the transaction is sent to the Bitcoin mempool, it is deemed completed despite the fact that miners haven't yet "mined" a block containing the transaction.
Bitcoin ATMs have been growing in number across the world, with over 4,000 already in operation.
Between Sept. 16 and 26, four men were captured on CCTV cameras making 112 withdrawals from Bitcoin kiosks in seven Canadian cities. The tools themselves weren't created for such activities, but allow for "stuck" transaction to go through using additional fees. That is why services ask for multiple confirmations for every transaction.
The second suspect is believed to be responsible for transactions that occurred in Calgary.
Agencies including the Toronto Police Service, Hamilton Police Service, Winnipeg Police Service and Halton Regional Police Service are assisting CPS. All pertinent information regarding the suspects can be anonymously submitted to the police.