Operation Avalanche: U.S. and Canada Unite to Take Down Crypto Scam
U.S. and Canadian authorities have closed down a sophisticated phishing scheme that duped over $4.3 million in Ethereum through fake wallet approvals. The collaborative operation, dubbed Operation Avalanche, is an emerging trend in cross-border coordination in the fight against blockchain crimes.
Approval Phishing at the Core
The scam relied on “approval phishing,” an attack method where the victims are duped into giving permission for scammers to control their wallets. Once permission has been granted, the scammers make cash payments directly, without additional intervention by the owner of the wallet.
This tactic had typically been linked to “pig butchering” — a scam method where victims are tricked into investing in fake crypto projects before being drained out of money.
Blockchain Forensics Fuel Enforcement
The U.S. Secret Service’s Washington Field Office provided Canadian law enforcement with blockchain analysis and forensic support.
“Our analysts foiled this scheme and were able to keep stolen funds from reaching nefarious actors,” added Special Agent in Charge Matt McCool.
The support helped identify compromised wallets and provide prompt notice to innocent victims.
Widespread Canadian Involvement
Canadian participants in the operation included the BC Securities Commission, Ontario Provincial Police, Alberta Securities Commission, and the Royal Canadian Mounted Police, among a number of local police and securities regulators.
The multi-agency operation is proof of an emerging trend among enforcement agencies to address the unique requirements of crypto crimes.
Ongoing Investigations and Asset Recovery
The authorities are also persisting with following up on additional compromised wallets and recovering the seized funds to restore them to the victims. Operation Avalanche’s success attests to the power of cooperation in addressing crypto-facilitated fraud and sets a model for subsequent operations.
