Schwab Ordered to Pay $1.3M for Processing $1.7M Crypto Scam Transfer

An 82-year-old man lost nearly $1.7 million to scammers who convinced him that he needed to return an erroneous refund, which they claimed was sent by mistake.

The scammers allegedly gained access to his computer and processed three wire transfers totaling almost $1.7 million to crypto exchange Okcoin over three days through Charles Schwab, according to the family's attorney.

A FINRA arbitration panel ordered Charles Schwab to pay $1.34 million in compensatory damages after considering the pleadings and evidence presented by Morthland's sons, who accused the company of negligence and breaching its fiduciary duty.