Canadian Music Fund Alleges Nearly $10 Million Siphoned to Cryptocurrency Platform
Millions Missing: Criminal Investigation Launched
A Canadian non-profit organization supporting the country’s musical talent alleges nearly $10 million vanished under suspicious circumstances. The funds, intended for artists and music industry professionals, were allegedly diverted from FACTOR – the Foundation Assisting Canadian Talent. Now, the organization might not be able to return crucial funding to the artists who need it most.
In court documents, FACTOR alleges that in June, unauthorized users gained entry to its Scotiabank account, transferring nearly $9.8 million to a numbered company, which then funneled the money to the cryptocurrency world.
The alleged crime exposed vulnerabilities in financial controls. While the money journeyed through banks and a crypto platform named VirgoCX, FACTOR positions further investigation is needed to understand the full extent of the breach.
FACTOR, championing a diverse range of musicians, from emerging talent to established names, revealed the missing money left them reeling. It announced the issue last week, prompting swift action, with FACTOR swiftly reporting the heist to law enforcement authorities.
FACTOR’s Crucial Role in the Music Ecosystem
Since 1982,FACTOR has underpinned the Canadian music scene, providing funding to a multitude of projects and artists. Bands like Nickelback, Tegan and Sara have benefited from FACTOR’s contributions. These were not triple-A names at the time. The organization’s financial security is now threatened.
Criminal Investigation Launched The incident is actionable
A spokesperson provided no comment by FACTOR.” “
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“We are all praying that it comes to a resolution, that the money is recovered and that all will be well in the end,” said Ebonnie Rowe, founder of Bandit claims the theft is responsible,isticated investigators have not yet found evidence of FACTOR’s own involvement. Starting January, an individual emails happened, before FACTOR was in on further investigation
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## Interview with FACTOR Representative on Missing Funds
**Interviewer:** We’re here today with [Guest Name], representative from FACTOR, the Foundation Assisting Canadian Talent. Thank you for joining us.
**Guest:** Thank you for having me.
**Interviewer:** This must be a very difficult time for FACTOR. Could you tell us about the situation and what happened?
**Guest:** Absolutely. We were devastated to discover that almost $10 million in funds earmarked for supporting Canadian musicians went missing earlier this year. In June, unauthorized individuals gained access to our Scotiabank account and transferred the money through a series of transactions involving a numbered company and ultimately into the world of cryptocurrency.
**Interviewer:** That’s a shocking amount of money. Can you explain how this theft could have happened and the vulnerabilities it exposed?
**Guest:** We’re still investigating the full extent of the breach, but initial findings suggest failures in our financial controls allowed unauthorized access to our account. We’re working closely with Scotiabank and law enforcement to determine exactly how the funds were diverted and to ensure such a breach cannot happen again.
**Interviewer:** The article mentions VirgoCX, a cryptocurrency platform. Do you know if the stolen funds ended up there?
**Guest:** We believe the funds were funneled through VirgoCX, but as the investigation is ongoing, we can’t confirm that definitively.
**Interviewer:** What impact will this theft have on FACTOR’s ability to support Canadian musicians?
**Guest:** This is a tremendous setback for us and for the artists we serve. This funding is vital for supporting emerging and established musicians across Canada.
While FACTOR is committed to minimize the impact, the loss of these funds will undoubtedly affect our ability to provide grants, funding initiatives, and support programs for the foreseeable future.
**Interviewer:** Is there a message you want to convey to the Canadian music community
during this difficult time?
**Guest:** We want to reassure the music community that FACTOR remains committed to its mission of supporting Canadian talent. We are taking all necessary steps to recover the stolen funds and strengthen our financial controls. We appreciate the community’s understanding and continued support during this challenging time.
**Interviewer:** Thank you for your time, and we hope for a swift resolution to this situation.
**Guest:** Thank you.
