Good day everyone,
I hope you are all having a good day, welcome to CryptoGod-1's blog on all things crypto. In this post I will be looking at a combined effort of law enforcement to crackdown on cryptocurrency scams on the Ethereum blockchain, known as “Operation Avalanche.”
“Operation Avalanche”
As part of an April 16 press release it has been revealed that the U.S. Secret Service has collaborated with Canadian officials in what they have dubbed “Operation Avalanche.” This is a project with the overall aim of identifying compromised wallets on the Ethereum blockchain which have been linked with cryptocurrency fraud.
Along with the assistance of the BC Securities Commission the forensic analysts within the United States Secret Service Washington Field Office have worked on ways to warn the victims of cryptocurrency fraud regarding the loss and potential loss of their assets due to an ongoing approval phishing scam.
Back in March 2025 between the 11th and 12th a group of Canadian securities regulators and police agencies gathered for a summit as part of a concerted effort to identify and contact potential victims of crypto fraud. The following partners were included:
- Ontario Securities Commission
- Alberta Securities Commission
- L'Autorité des marchés financiers
- RCMP
- Delta Police Department
- Vancouver Police Department
- U.S. Secret Service
A number of members within these agencies gathered as “Operation Avalanche” made use of securities regulators, multiple Canadian police agencies, crypto trading platforms and a blockchain analysis firm to help crackdown and curb efforts of cryptocurrency crime while also assisting victims who have been impacted by a $4.3 million scheme. The members went about contacting potential victims of crypto fraud by telephone and email over a number of weeks to explain the threat and what they can do to minimize or prevent future harm. WFO Special Agent in Charge Matt McCool stated:
“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. We will continue working with Canadian law enforcement and financial partners to identify and seize stolen assets to return to victims.”
Chainalysis, the blockchain analytics firm, noted that “Approval phishing” was the scam in question. This is when a scammer convinces a victim to sign illicit blockchain transactions, giving the crypto fraudster access to the user’s wallet. This operation targets the “Approval phishing” taking place 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 bigger scam which is known as “pig butchering” and involves the scammers gaining the trust of their potential victims and manipulating them into transferring funds to invest in fake cryptocurrency projects. The press release stated:
“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.”
Have a great day.
Peace. CryptoGod-1.
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