The US Secret Service has worked with Canadian authorities in a cross-border crackdown of sophisticated crypto fraud that leaked $4.3 million from victims’ Ethereum wallets.
The operation, known as the “operation avalanche,” included regulators, law enforcement agencies, and cryptographic platforms working to identify breached wallets and alert potential victims.
At the heart of fraud is a tactic known as “authorized phishing,” which allows victims to unknowingly allow scammers to access their crypto wallets.
Once access is granted, the fraudster can withdraw funds directly without further interaction. Scams are often associated with “slaughter of pigs,” a social engineering scheme in which victims are manipulated into investments in fake crypto projects.
The Washington Field Office of the US Secret Service provided forensic blockchain assistance to Canadian officials.
“Our analysts have confused the scheme and prevented bad actors from receiving stolen funds,” said Matt McCool’s special agent.
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Enforcement agencies gather
Operation Avalanche brought together several Canadian institutions, including the BC Securities Commission, Ontario Police, the Alberta Securities Commission, Royal Canadian Cavalry Police, and several local police and securities regulators.
This operation combines traditional research work with blockchain analysis to highlight how law enforcement adapts to combat cryptographic fraud.
It also highlights the growing cooperation between the US and Canadian authorities in addressing crime, including digital assets.
Authorities are making ongoing efforts to identify more compromised wallets and return seized assets to victims.
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