Person A gives a loan to person B.
Person B gives a loan to person C.
Person C scams person B and doesn't pay the loan back.
Person B tells person A he won't pay back to person A because person C didn't pay person B back.

Is that how you do things in real life?
Nope, person B still has to pay back to person A even when person C scammed person B. If he doesn't, person B is a scammer too.