The funds had recently been deposited by Ottawa and were set to be distributed to the music industry in the near future. So far, FACTOR has used its savings to cover the loss and pay out its program recipients. But that funding is limited and Ottawa is not backstopping the alleged theft. The clock is ticking and FACTOR is hoping for a legal win.FACTOR, short for The Foundation Assisting Canadian Talent on Recordings, launched in 1982.
It’s not uncommon to find FACTOR’s name or logo stamped on the back of Canadian albums and at the bottom of websites, including for record labels. The organization has also provided funds to events ranging from the Polaris Music Prize to the International Indigenous Music Summit to the Canadian Country Music Awards.
With Honey Jam’s 30th anniversary celebrations coming up next year, “FACTOR’s support is something we were very much looking forward to and need,” Rowe said.Filings with the Ontario Superior Court of Justice Commercial List allege that someone gained access to FACTOR’s digital Scotiabank account in January, registering with a third-party e-mail address bearing the name of the grant provider’s former part-time chief financial officer.
The foundation quickly moved about $5-million to a short-term investment account. But on June 12, just over a week later, the unknown user allegedly moved $9.8-million into a Scotiabank account belonging to a numbered company. Most of the money was then transferred to an ATB Financial account belonging to the cryptocurrency platform VirgoCX Direct. Filings stated it was converted into the USDC cryptocurrency and shifted between various wallets.
At the heart of the matter is who is legally responsible for the security breach that led to the alleged theft. Beyond seeking the recovery of its funds through Scotiabank and the crypto platform VirgoCX, FACTOR is also pressing Scotiabank on a “guarantee” on its website. It says that in cases of direct financial losses due to unauthorized activity, the bank would “fully reimburse you, provided you’ve met all of your security responsibilities as outlined in the terms of our customer agreements.
Business Business Latest News, Business Business Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: SooToday - 🏆 8. / 85 Read more »