In a landmark display of cross-border cooperation, U.S. and Canadian authorities have joined forces to curb soaring crypto scams, successfully freezing tens of millions in illicit funds—part of a broader $300 million+ global crackdown. This joint enforcement action signals a new era of proactive, tech-driven public-private collaboration and US and Canada combat crypto scams.
Background: The Escalating Threat of Crypto Scams
Crypto fraud continues its alarming ascent. Chainalysis reports that stolen funds surged 21% in 2024 to $2.2 billion, with advanced scams like high-yield “pig butchering” and AI-enabled deception becoming increasingly sophisticated and US and Canada combat crypto scams.
Against this backdrop, coordinated law enforcement responses and blockchain analytics have become vital tools for disrupting illicit operations.
Joint Operations: Project Atlas & Operation Avalanche
Project Atlas
Led by the Ontario Provincial Police’s Cyber-Enabled Fraud Team (CEFT), Project Atlas mobilized agencies including the RCMP, U.S. Secret Service, and exchanges like Coinbase and NDAX. The initiative:
- Identified over 2,000 scam-linked crypto wallets across 14 countries.
- Prevented over $70 million in theft, utilizing Chainalysis analytics.
- Collaborated with Tether to blacklist more than $50 million in USDT, thwarting attempts by scammers to liquidate funds.
Operation Avalanche
Spearheaded by the British Columbia Securities Commission, this effort focused on Ethereum-based schemes. The operation:
- Detected $4.3 million in scam losses affecting primarily Canadian victims.
- Included cooperation with agencies such as the OPP, Alberta Securities Commission, Ontario Securities Commission, and U.S. Secret Service and US and Canada combat crypto scams.
Together, these operations uncovered upwards of $74 million in projected losses and enabled the freezing of “tens of millions” in illicit crypto.
Complementary Global Efforts
Parallel industry-led initiatives have amplified enforcement impact:
- The T3 Financial Crime Unit—backed by TRON, Tether, TRM Labs, and Binance—has frozen over $250 million in illicit assets in less than a year.
- Combined with the U.S.–Canada efforts, over $300 million globally has been frozen in scam-related crypto.
Chainalysis: Driving Proactive Enforcement
Chainalysis provided the critical analytical infrastructure that transformed enforcement from reactive investigations to proactive disruption:
- Chainalysis Reactor delivered real-time insights into illicit fund flows.
- Data Solutions enabled cross-chain monitoring and automated alerts about scam-related activity.
- A global network spanning 70+ countries ensured swift, coordinated action with exchanges and enforcement agencies.
Broader Market Implications
Freezing—but not necessarily seizing—assets complicates direct restitution but delivers a clear message: criminal actors are being cornered. The collaborative response:
- Enhances trust in the crypto ecosystem and US and Canada combat crypto scams.
- Encourages investment confidence by showcasing enforcement capability.
- Forewarns fraudsters that chained, data-fueled enforcement is on the rise.
The Road Ahead: Emerging Threats & Evolving Defense
While enforcement evolves, fraud sophistication escalates:
- AI-powered scams are rising, featuring deepfakes, phishing bots, impersonation, and scalable automation.
- Defense is evolving too: AI-powered tools like Chainalysis Alterya can detect and respond to threats faster than ever.
The future hinges on deepening collaboration between private and public sectors, embracing AI defenses, and fostering regulatory frameworks that enable rapid multi-jurisdictional action.
Conclusion
The joint crackdown by the U.S. and Canada, backed by Chainalysis analytics, marks a pivotal shift—from chasing scams after the fact to preventing them proactively. With authorities freezing hundreds of millions in illicit crypto globally, the message is loud and clear: fraudsters are running out of places to hide.
- For Users: Stay vigilant—verify identities, report scams, and trust trusted platforms only.
- For Industry Players: Support analytics integration and proactive threat reporting.
- For Regulators: Enable frameworks that bridge jurisdictional gaps and encourage collaboration.