WASHINGTON – Investigative and Network Intrusion Forensic Analysts with the United States Secret Service Washington Field Office participated in Operation Avalanche, a coordinated operation with the BC Securities Commission to warn victims of crypto fraud they may have lost – or may soon lose – some of their assets.
The operation brought together securities regulators, multiple Canadian police agencies, crypto trading platforms and a blockchain analysis firm with the goal of finding compromised wallets on the Ethereum blockchain. Once identified, the owners of those compromised wallets are warned that they are victims of a scam, known as “approval phishing.”
“Our analysts from the Washington Field Office provided Canadian officials with the help needed to disrupt this scheme and prevent bad actors from continuing to receive stolen funds,” said WFO Special Agent in Charge Matt McCool. “We will continue working with Canadian law enforcement and financial partners to identify and seize stolen assets to return to victims.”
“Approval phishing” is a scam in which victims are tricked into granting access to a crypto wallet on the Ethereum blockchain. Once that approval is granted, the fraudster gains access and can withdraw funds without the owner’s knowledge. This is often part of a larger scam known as “pig butchering,” which involves the scammers gaining the trust of their potential victims and manipulating them into transferring funds to invest in fake cryptocurrency projects. The blockchain addresses identified during Operation Avalanche were drained of crypto assets worth an estimated 4.3 million dollars.
The operation is an example of how the U.S. Secret Service’s investigative expertise, resources, and long-standing global law enforcement partnerships can aid in disrupting cryptocurrency scams orchestrated by transnational organized crime.
In addition to the U.S. Secret Service and the BC Securities Commission, Operation Avalanche included the Ontario Provincial Police, Alberta Securities Commission, the L’Autorité des marchés financiers, Ontario Securities Commission, Delta Police Department, Vancouver Police Department, and the Royal Canadian Mounted Police.
If you believe you are a victim of a crypto scam, report the fraud to your local law enforcement agency, the Federal Trade Commission at https://reportfraud.ftc.gov, and the Internet Crime Complaint Center at https://www.ic3.gov/.
For more information on financial crimes and steps you can take to protect your assets, visit https://www.secretservice.gov/investigations/digitalassets.
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