The four men allegedly executed 112 fraudulent "double spend" attacks on "bitcoin kiosks" (ATMs) located in seven Canadian cities: Calgary, Toronto, Montreal, Winnipeg, Sherwood Park, Ottawa and Hamilton.
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. The attacks took place in 7 cities across Canada, half of them taking place in Calgary. According to the police, the suspects would initiate a withdrawal from the company's bitcoin ATM and cancel the transaction before the company could process the withdrawal.
Investigators believe the fraudulent transactions were committed by a group of individuals who were working together and 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.
In the case of this Bitcoin ATM brand, it appears it was crediting unconfirmed transactions to allow money to be withdrawn before it received the suspect's Bitcoin. The second double-spends that transaction with a transaction with higher fees, paying only the change address. Police are now seeking information regarding four suspects believed to be involved in the fraud.
Looking for the suspects, Calgary Police are being aided by other law enforcement agencies, including the Toronto Police, the Winnipeg Police Service, and more. People can also anonymously submit tips through Crime Stoppers.
Some miners won't accept transactions with these output types; those miners will accept the second double-spend transaction, helping you achieve a successful double-spend.
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