Cryptocurrency

The accused was charged with three offences: fraudulently possessing computer passwords obtained from the Genesis Market (an online marketplace for stolen credentials obtained through malware), possessing four forged pieces of identification, and breaching a probation order prohibiting possession of identity documents not legally issued in his name.

The Crown proved that the accused controlled two Genesis Market accounts and purchased thousands of stolen credentials using cryptocurrency funded through a Coinbase account registered in his name.

Four forged driver's licenses bearing the accused's photograph but different names were found in his residence.

The court found the accused guilty on all three counts after determining that the electronic evidence from the Genesis Market database was authentic and reliable, that the accused controlled the relevant accounts, and that the forged identification documents were clearly counterfeit.

The plaintiff brought a motion for contempt against the defendant for breaching a Mareva order.

The defendant had drawn approximately $950,000 from lines of credit secured against her properties, contrary to the order.

The defendant admitted to the breach and claimed she had been defrauded in a cryptocurrency investment scheme.

The court found the defendant in contempt but imposed a fine of $7,500 rather than imprisonment, considering the defendant's personal circumstances, remorse, and the fact that the contemptuous conduct was complete.

Costs were fixed at $50,000.

The Ontario Securities Commission appealed the acquittal of Stephan Katmarian on four counts of securities violations related to the promotion of Peblik Inc., a cryptocurrency token purportedly backed by the Thierry Mine.

The trial judge acquitted Katmarian on all counts.

On appeal, the Superior Court allowed the appeal on Count 1 (fraud), finding the trial judge erred in law regarding the element of deprivation by requiring proof of detrimental reliance rather than risk of deprivation.

The Court dismissed the appeals on Counts 2 (misleading statements to the Commission), 3 (unregistered trading in securities), and 4 (distribution without prospectus).

The Court entered a conviction on Count 1 and remanded for sentencing.

In a family law proceeding involving cryptocurrency assets, the applicant brought a long motion regarding disclosure.

The respondents sought leave under Rule 39.02(2) of the Rules of Civil Procedure to file an expert affidavit after having already cross-examined the applicant on her motion materials.

The court dismissed the request for leave, finding the respondents failed to show the evidence responded to a matter raised on cross-examination or provide an adequate explanation for the delay.

The court also ruled on several refusals from questioning, ordering the respondents to answer some questions while upholding other refusals.

The parties separated following incidents of family violence, including the respondent hitting their child and physically and sexually assaulting the applicant.

The applicant sought sole decision-making and supervised parenting time, while the respondent sought equal parenting time and joint decision-making.

The court found the applicant's evidence of family violence credible and ordered that the respondent's parenting time be supervised while inside the home, but permitted unsupervised time outside the home.

The applicant was granted sole decision-making responsibility and a permanent restraining order against the respondent.

The court also imputed rental income to the respondent for child support purposes and ordered him to pay an equalization payment and retroactive child support.

The plaintiff brought a motion for substitutional service, extension of a prior order, and a contempt order against the defendant, who had failed to comply with an order to place disputed cryptocurrency assets with a neutral custodian.

The court granted substitutional service by email, noting the defendant's sophistication with technology and his evasion of personal service.

The court extended the prior order and issued a warrant for the defendant's arrest under Rule 60.11(4) to compel his attendance at a contempt hearing, emphasizing the need for his participation in the novel legal issues surrounding blockchain technology.

The applicant sought interim child support for an adult child (S.H., age 24) with mental and physical health issues, ongoing university costs, counselling costs, and interim disbursements for legal and expert fees.

The respondent brought a cross-motion seeking a psychological assessment of S.H., disclosure, and an order to file cryptocurrency investment documents under seal or partially redacted due to security risks.

The court found S.H. was entitled to interim child support and some post-secondary education expenses.

It granted reduced interim disbursements to the applicant for legal and expert fees, to be treated as a loan.

The respondent's request for a psychological assessment of S.H. was adjourned to allow S.H. to obtain independent legal advice, and the request for cryptocurrency redaction was granted due to security concerns.