Background:
4 Star Ventures (2012) Ltd. appealed a decision granting summary judgment to 1983283 Ontario Inc., operating as Secure Digital Markets (SDM). The case arose from a fraudulent transfer of $110,673.00 by a non-party, Denzel Blackett, from 4 Star Ventures’ account. Blackett used $103,932.50 of these funds to purchase cryptocurrency from SDM, which claimed it acted as a bona fide purchaser without notice of fraud.

Legal Issues:
The appeal centered on whether SDM knew of the fraud before transferring 9.6823 bitcoins to Blackett. The appellant challenged the Chambers judge’s rejection of key evidence, including affidavits and correspondence suggesting inconsistencies in SDM’s account of when it learned of the fraud. The court also examined the proper use of summary judgment procedures under Rule 7-5 of The King’s Bench Rules.

Court Decision:
The Saskatchewan Court of Appeal found that the Chambers judge erred in rejecting relevant evidence and failing to address whether SDM had notice of the fraud. The court set aside the summary judgment, revived the appellant’s claims, and remitted the matter for trial in the Court of King’s Bench.

Costs and Award:
The Court of Appeal awarded $3,000 in costs to 4 Star Ventures, payable by SDM.