The BCSC led Operation Avalanche in March, disrupting an international crypto fraud. They identified compromised Ethereum wallets belonging to 89 victims and informed them to prevent losses. Despite perpetrators being overseas, the operation focused on alerting victims about “approval phishing” tactics that led to $4.3 million in losses. The BCSC plans to use knowledge from this operation for future fraud prevention.
The British Columbia Securities Commission (BCSC) coordinated a major operation called Operation Avalanche, targeting an international cryptocurrency fraud scheme. This initiative involved collaboration between Canadian securities regulators and law enforcement, executed between March 11 and 12, as reported by the BCSC on Thursday.
During Operation Avalanche, the BCSC discovered compromised Ethereum blockchain wallets linked to 89 victims. They promptly reached out through phone calls and emails to inform these individuals of the ongoing threat, enabling them to take preventive measures against potential losses.
Lori Chambers, BCSC’s deputy director of enforcement, noted that as the perpetrators were located outside Canada, traditional law enforcement actions were challenging. She remarked, “Even if we don’t catch the perpetrators, anything we can do to make their life harder is worthwhile.”
The operation specifically targeted “approval phishing,” a method wherein victims unintentionally permit fraudsters access to their Ethereum wallets. This access often results in the withdrawal of cryptocurrency assets by the fraudster, exploiting their trust.
The Ethereum blockchain allows tracking of wallets that have granted access permissions. While there may be legitimate uses for such access, it frequently correlates with long-term online investment scams. The discovered wallets reportedly had approximately $4.3 million worth of crypto assets drained.
Building on Operation Avalanche’s techniques, the BCSC intends to enhance their efforts by regularly alerting potential fraud victims in the future, aiming for proactive prevention measures against cryptocurrencies.
