U.S. Secret Service and Canadian Police Uncover $4.3M Ethereum Phishing Operation

U.S. Secret Service agents and Canadian law enforcement have successfully shut down an Ethereum-based phishing scheme that defrauded over $4.3 million victims.

The cross-border investigation targeted a cybercrime operation that had compromised user wallets through deceptive approval scams.

Named “Operation Avalanche,” the investigation aimed to trace the stolen funds, freeze suspicious wallets, and warn victims before further losses occurred. The mission involved cooperation between U.S. federal agents and key Canadian regulators including the British Columbia Securities Commission, Ontario Securities Commission, Alberta Securities Commission, and the Royal Canadian Mounted Police.

Approval phishing scheme targeted Ethereum users

The scam did its work through a technique called “approval phishing” that secretly made users permit unauthorized parties access their wallets. The fraudulent scheme made victims click faulty links that appeared authentic. Users experienced problems when they pressed the notification link which stealthily authorized transfers to the scammer while giving them complete control over their digital wallets. Unlike traditional password-based fraud, this tactic allowed attackers to bypass security barriers by exploiting wallet permissions. Investigators used blockchain tools to analyze suspicious transactions and track affected wallets. This allowed them to issue early warnings to potential victims and instruct them to revoke unauthorized access. Security protocols were reinforced to limit further damage.

The Ontario Securities Commission through Bonnie Lysyk confirmed that immediate intervention prevented the situation from worsening beyond what it already was. Bonnie Lysyk stated that immediate collaboration between various organizations resulted in the most effective manner to halt the threat.

Global Crypto fraud drives regulatory crackdown

Crypto sector security faces this kind of phishing as a rapidly growing threat. Numerous users in Australia joined international victims of such scams. The Australian regulators executed the shutdown of more than 90 companies which were linked to digital asset fraud. Greater international partnership together with quicker regulatory responses emerged as a result of increasing popularity in these fraudulent schemes. The operation reflects efforts made by law enforcement to control crypto-related cybercrime as part of nationwide security measures. The U.S. Secret Service now emphasizes conducting inquiries regarding digital currency operations. During the previous month, the agency took down websites connected to a Russian crypto exchange that served as a platform for criminal transactions.

 Public awareness and cyber hygiene urged

Authorities from both countries continue to stress the importance of education and caution among crypto users. Ethereum holders are being urged to regularly audit their wallet permissions using tools like Revoke.cash and Etherscan’s Token Approval Checker.

The police have decided to withhold information regarding the suspects because of their continuous probe. Officials encourage people to use authorized applications while checking links and reducing their interaction with unauthorized cryptocurrency deals.

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