B.C. Securities Commission teams up with police, regulators, and trading platforms to tackle international crypto fraud
A two-day investigation led by British Columbia’s securities regulator has revealed that 89 individuals were collectively defrauded of more than $4 million through a sophisticated cryptocurrency scam.
The B.C. Securities Commission (BCSC) said the March operation, codenamed Operation Avalanche, was aimed at locating compromised crypto wallets and contacting victims who may have been unaware that their digital assets had been drained by cybercriminals.
According to the commission, the fraud involved a method known as “approval phishing” — a scheme in which victims are deceived into granting access to their cryptocurrency wallets. Once the scammers gain control, they are able to siphon off funds without alerting the wallet owners.
The operation was a coordinated effort involving a coalition of Canadian and international law enforcement and regulatory agencies. Participants included provincial regulators from Alberta, Ontario, and Quebec, as well as police departments in Vancouver and Delta, the RCMP, and the U.S. Secret Service.
Several cryptocurrency trading platforms also supported the initiative, including Netcoins, Ndax, and Coinbase. The collaboration extended to a crypto analysis company, which helped trace fraudulent activity across the blockchain.
The BCSC said the victims identified through the operation were promptly contacted to help them secure their remaining assets and prevent additional losses.
Lori Chambers, the commission’s deputy director of enforcement, emphasized the urgency and complexity of tackling international crypto fraud. “So, we’re finding new ways to disrupt their activity,” Chambers said.
“One way is proactively alerting victims, often while the con is still unfolding, interrupting the scheme and preventing the bad actors from getting the stolen funds.”
Chambers added that while apprehending perpetrators remains a challenge—especially when they operate across borders—intervening early can still make a difference. “Even if we don’t catch the perpetrators, anything we can do to make their life harder is worthwhile,” she said.
Operation Avalanche also provided valuable intelligence for law enforcement and regulatory bodies, potentially aiding future efforts to combat the growing threat of online investment fraud.
As cryptocurrency adoption continues to rise, Canadian authorities are intensifying their focus on digital asset scams, warning users to remain vigilant and skeptical of unsolicited wallet access requests or suspicious online platforms.
