Not upheld: scam and fraud - alleged cryptocurrency investment scam complaint against Bank of Scotland plc (trading as Halifax)

Decision detail

Summary

Mr B complained to Halifax that he had been deceived by scammers into making payments for cryptocurrency investments, including Ethereum mining (Scam 4) with losses of approximately £306,000 from June to September 2022. This decision addresses only Scam 4. The investigator concluded there was insufficient evidence of a scam, noting that Mr B's losses appeared to result from structural changes to Ethereum mining in 2022. The ombudsman agreed, finding that Mr B's own account supported this conclusion, as he acknowledged that an upgrade to Ethereum mining prevented access to his funds rather than fraudulent activity. The complaint was not upheld and no remedy was ordered.

The Ombudsman's reasoning

The ombudsman agreed with the investigator's conclusion that there was insufficient evidence to demonstrate Mr B was the victim of a scam. Mr B's own account supported this finding, as he acknowledged that a structural change to Ethereum mining in 2022 prevented access to funds, rather than fraudulent activity. The losses appeared to result from legitimate changes to the Ethereum mining protocol rather than scam activity.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website