BC Court Rules NDAX Canada Not Liable in C$671K Ethereum Scam
British Columbia’s Supreme Court has ruled that NDAX Canada is not liable in a C$671,000 Ethereum scam, affirming the limits of NDAX Canada liability when customers ignore clear fraud warnings. Registered with FINTRAC and compliant with AML/KYC rules, NDAX issued mandatory crypto risk disclosures, irreversible withdrawal reminders, a fraud-alert phone call, and final compliance confirmation, satisfying its duty of care. Justice Lindsay LeBlanc found these steps “as clear as they could be,” establishing a Canadian precedent that crypto exchanges meet their legal obligations through strong fraud warnings rather than blocking transactions. The ruling, following intensified AML enforcement—highlighted by a recent C$176.9 million fine on another firm—underscores the importance of regulatory compliance and user diligence against unrealistic investment returns.
Neutral
This court ruling clarifies that crypto exchanges like NDAX Canada fulfill their legal duty by issuing clear fraud warnings, rather than intervening directly in transactions. In the short term, this decision is unlikely to impact Ethereum trading, as it does not affect asset security or platform operations. Over the long term, the precedent may bolster trust in regulated exchanges and encourage user diligence, but will not directly influence ETH price dynamics. Therefore, the market impact is neutral.