Quebec RCMP say a recent $56 million cryptocurrency seizure is the largest in Canadian history, and the first time law enforcement in the country have shut down a cryptocurrency exchange platform.
The RCMP’s money laundering investigative team started looking into the platform in June 2024, after it received a tip from Europol.
“The investigation found that the platform contravened Canadian laws and regulations,” RCMP said in a Sept. 18 news release.
They said the platform had failed to register as a “money services business” with the Financial Transactions and Reports Analysis Centre of Canada. RCMP also allege the organization did not identify its clients.
Police said the main attraction of that type of platform is that it doesn’t require users to identify themselves in order to make an account and therefore hides the source of funds.
“This is a common tactic used by criminal organizations that launder money.”
RCMP said they will be analyzing the transaction data from the platform, adding that charges may follow.
Cryptocurrency Scams
The seizure comes more than two months after RCMP recovered an estimated $640,000, as part of an investigation into a sophisticated investment scam that targeted an Ontario resident, police said in July.RCMP said they were able to get the money after obtaining a special warrant for digital assets.
Federal policing criminal operations Sgt. Ryan Berry said that “prompt reporting” by the victim of the fraud helped officials recover the money.
“In cases of stolen cryptocurrency, timing is everything,” Berry said. “Given the speed at which cryptocurrency assets can be transferred, the sooner investigators begin following the transactions, the higher the likelihood of interdiction and seizure during the money laundering process.”
He said the company involved in the incident, Tether International, S.A. de C.V., had cooperated with officials to recover the funds. He called the voluntary assistance “instrumental.”
“Collaboration and assistance from the private sector are paramount in cryptocurrency investigations,” Berry said.
RCMP warned Canadians to be wary of cryptocurrency-related investments from social media, online advertisements, and online dating apps.
They said in most scam situations, spoofed websites and mobile apps are used to encourage victims to invest money on the platform. They added that when victims attempt to withdraw their money, they are asked for money to cover taxes or other fees.
“Eventually, the perpetrators stop communicating with the victim and the victim realizes they have been defrauded of all the money they believed they were investing,” RCMP said.
