Canadian securities regulators, led by the British Columbia Securities Commission (BCSC), have initiated a coordinated effort named Operation Avalanche to address cryptocurrency fraud. The operation, which took place on March 11 and 12, involved multiple provincial regulators including the Ontario Securities Commission (OSC), the Alberta Securities Commission, and the Autorité des marchés financiers, alongside the Royal Canadian Mounted Police (RCMP) and local police forces.
During the operation, authorities analyzed the Ethereum blockchain to identify compromised wallets and contacted 89 potential victims nationwide, alerting them to the risks of ‘approval phishing,’ a tactic where fraudsters deceive individuals into granting access to their cryptocurrency assets.
Bonnie Lysyk, Executive Vice President of Enforcement at the OSC, emphasized the importance of proactive measures: ‘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.’
The operation also saw collaboration with the U.S. Secret Service and Canadian cryptocurrency platforms such as Netcoins Inc., Ndax Canada Inc., Coinbase Canada Inc., Wealthsimple Investments Inc., and Shakepay Inc., highlighting a cross-border and industry-wide commitment to enhancing security in the cryptocurrency sector.
Investors are advised to verify the registration status of any entity offering investment opportunities and to consult resources available on the OSC’s website for guidance on protecting themselves and recovering funds in the event of a scam.
