US and Canada Team Up Against Crypto Scams, Freeze $74 Million

Law enforcement agencies across North America are stepping up their fight against crypto scams through coordinated international operations.

Recent joint efforts between the United States and Canada have resulted in the freezing of tens of millions in stolen cryptocurrency and prevented over $70 million in additional losses.

Major Cross-Border Operations Target Investment Fraud and Crypto Scams

Two significant operations highlight the growing cooperation between US and Canadian authorities:

1. Project Atlas, led by the Ontario Provincial Police, focused on investment scams and brought together multiple agencies, including the Royal Canadian Mounted Police, US Secret Service, and various provincial law enforcement units.

The operation identified more than 2,000 cryptocurrency wallet addresses connected to fraud victims across 14 countries.

Working with Tether, investigators successfully blacklisted over $50 million in USDT tokens, effectively preventing scammers from moving or cashing out stolen assets.

2. Operation Avalanche, spearheaded by the BC Securities Commission, targeted Ethereum-based fraud schemes.

This operation uncovered $4.3 million in losses tied to blockchain scams and involved extensive collaboration between Canadian regulatory bodies and US law enforcement.

Advanced Blockchain Analytics Drive Success

The success of these operations relies heavily on sophisticated blockchain analysis tools provided by companies like Chainalysis.

These platforms allow investigators to trace cryptocurrency transactions in real time, identify criminal networks, and locate victim funds across multiple blockchain networks.

Unlike traditional financial crimes, cryptocurrency transactions leave permanent records on public blockchains. This creates unique opportunities for law enforcement to track money flows and identify consolidation points where criminals gather stolen funds.

Proactive Approach Replaces Reactive Investigations

These operations represent a shift from responding to individual complaints toward proactive threat disruption.

Law enforcement agencies now use automated alerts to identify known scam patterns across different blockchains, enabling rapid response to new criminal activity.

The global nature of cryptocurrency fraud requires international coordination. Chainalysis works with organizations in over 70 countries, creating a network that enables intelligence sharing and coordinated enforcement actions across borders.

This collaborative model demonstrates how public-private partnerships and advanced technology can effectively combat the growing threat of cryptocurrency fraud in an interconnected financial system.