Canadian securities regulators and crypto platforms have conducted a coordinated operation to intervene in ongoing digital asset fraud. Operation Avalanche, led by the British Columbia Securities Commission (BCSC), warned investors whose Ethereum wallets had been compromised.
Ontario Securities Commission (OSC), law enforcement agencies, several crypto trading platforms, and blockchain analysis firm Chainalysis also participated in the effort.
Netcoins, Ndax, Coinbase, Wealthsimple, Shakepay, Kraken, Coinsquare Participated in ‘Operation Avalanche’
According to the announcement, the two-day initiative identified wallets exposed to “approval phishing” attacks, a method where victims unknowingly grant fraudsters the ability to withdraw assets.
Authorities contacted 89 affected individuals by phone or email, aiming to halt further losses and collect intelligence to support future enforcement.
Bonnie Lysyk, Executive Vice President of Enforcement at the OSC, commented, “Proactive and innovative approaches are crucial in disrupting fraud. By staying ahead of emerging threats and leveraging advanced technologies, we can protect investors and maintain the integrity of our financial markets.”
Operation Avalanche involved agencies from multiple jurisdictions, including the Alberta Securities Commission, Autorité des marchés financiers, Delta Police Department, Vancouver Police Department, RCMP, and the U.S. Secret Service. The initiative reflects broader collaboration among local, national, and international bodies to confront crypto fraud linked to transnational organized crime.
Registered Canadian trading platforms participating in the operation included Netcoins, Ndax, Coinbase Canada, Wealthsimple Investments, and Shakepay. Kraken and Coinsquare also contributed data to support the investigation.
The OSC continues to advise investors to verify the registration status of any firm or individual offering investment products. Educational resources and information about Operation Avalanche are available on the Commission’s official website.
Fraudsters are increasingly using sophisticated technology and psychological tactics, including social media deepfakes, romance scams, and emotional manipulation, to target victims. Many people who fall prey to these scams do not view themselves as traditional investors but are drawn in with promises of solving financial problems.
Last year, Coincover onboarded VirgoCX and Netcoins to its RegTech platform for crypto trading platforms as regulatory compliance becomes increasingly critical for the long-term prosperity of these businesses in Canada. With Canadian regulatory authorities tightening the rules for crypto companies, the blockchain protection company will help VirgoCX and Netcoins to provide the best-in-class security for customer assets.
VirgoCX and Netcoins will leverage Coincover’s protection technology designed specifically for the crypto market so that their customers are protected against both malicious activity and the loss of cryptocurrency, meaning users are safe from hackers and human error. Coincover provides a complete defence. With the Canadian Securities Administrator recommending crypto-asset companies protect customers against losing assets due to cyber and crime threats, Coincover’s risk management platform will enable VirgoCX and Netcoins to exceed these requirements and set their own standard of protection.
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