The Ontario Securities Commission announced it participated in a coordinated multi-agency initiative, Operation Avalanche, to identify compromised Ethereum wallets and warn wallet holders that they may have lost, or may soon lose, crypto assets due to fraud. The operation focused on “approval phishing”, where victims are tricked into granting wallet permissions that allow a fraudster to withdraw crypto. Led by the British Columbia Securities Commission, the March 11–12 operation brought together securities regulators, police agencies, crypto trading platforms and blockchain analytics firm Chainalysis to find compromised wallets on the Ethereum blockchain, identify their owners and issue warnings. Participants contacted 89 victims by phone or email and gathered information intended to support investigative and disruptive efforts against online investment fraud, including schemes linked to transnational organized crime. Participating platforms registered to operate in Canada included Netcoins Inc., Ndax Canada Inc., Coinbase Canada Inc., Wealthsimple Investments Inc. and Shakepay Inc., while Kraken and Coinsquare also provided information. The OSC pointed investors to its website for information on crypto investment fraud, prevention steps and actions to take if already victimized, including checking the registration of anyone offering an investment opportunity.
Ontario Securities Commission 2025-04-16
Ontario Securities Commission joins Operation Avalanche to warn 89 victims of Ethereum approval-phishing crypto fraud
The Ontario Securities Commission (OSC) joined Operation Avalanche, led by the British Columbia Securities Commission, to identify compromised Ethereum wallets and warn holders of potential crypto asset fraud. The operation, involving securities regulators, police, crypto platforms, and Chainalysis, focused on "approval phishing" scams. The OSC advised investors to visit its website for guidance on crypto investment fraud and prevention.