$40M Seized, Trust Destroyed? Canada’s Largest Crypto Crackdown Leaves Users Furious
The Royal Canadian Mounted Police (RCMP) Federal Policing – Eastern Region has introduced the biggest cryptocurrency seizure in Canadian historical past, after seizing greater than 56 million Canadian {dollars} (roughly $40 million) from the platform TradeOgre.
The operation was carried out by investigators specializing in monetary crime, cybercrime, and cryptocurrencies. It can be the primary time Canadian regulation enforcement has dismantled a cryptocurrency change.
Historic Crypto Bust
In the most recent press launch, the RCMP said that the case was initiated in June 2024 after a Europol tip led the Money Laundering Investigative Team (MLIT) to probe the platform’s actions.
Authorities found that TradeOgre violated Canadian monetary legal guidelines, notably for failing to register with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) as a cash providers enterprise and for neglecting to confirm its purchasers’ identities.
Investigators consider nearly all of funds passing by the platform have been tied to prison exercise, and famous that privacy-driven exchanges are sometimes utilized by organized crime teams to launder illicit cash. Transaction knowledge collected from the change will endure additional evaluation, and officers have indicated that expenses may comply with because the investigation stays ongoing.
“Straight Up Theft”?
The seizure sparked heated reactions throughout the neighborhood, as many customers expressed anger and concern concerning the destiny of professional funds. Reuben Yap, co-founder of Firo (previously ZCoin), questioned whether or not Canadian authorities intend to confiscate balances that originated from lawful sources. He argued that penalizing all account holders just because the change didn’t implement know-your-customer (KYC) procedures would quantity to theft from harmless customers.
Yap additional in contrast the state of affairs to the infamous BTC-e case, the place claimants faced a burdensome course of requiring intensive proof to get better funds, and warned that TradeOgre customers might fare even worse since reviews wanted to help claims are not accessible.
Other neighborhood voices echoed this outrage. For occasion, distinguished influencer CaptainCrypto called the transfer “fucking loopy” and pressured that customers who engaged in no wrongdoing at the moment are liable to shedding their belongings. He argued that such blanket seizures undermine belief within the monetary system and framed it as “straight up theft,” urging the broader crypto neighborhood to unite in opposition to what he views as an overreach of regulation enforcement authority.
Meanwhile, MetaMask safety lead Taylor Monahan tweeted,
“Sorry to contradict your “beliefs” however final time I checked my mates and I are usually not criminals. Very a lot trying ahead to seeing the proof, and so that you can present recourse to ALL harmless events you stole cash from with out notification and with out due course of.”
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