Canada confiscates $41M in crypto, based on "belief"

Canadian law enforcement said it has carried out the largest crypto seizure in the country’s history, once again reminding users that crypto assets on centralized platforms can be confiscated even without hard evidence.

The Royal Canadian Mounted Police (RCMP) confirmed that it seized more than CAD 56 million ($41 million) from TradeOgre, a crypto exchange that was shut down by Canadian authorities.

"Investigators have reason to believe that the majority of funds transacted on TradeOgre came from criminal sources," the RCMP said, without elaborating on the evidence.

Law enforcement emphasized that the main attraction of crypto platforms that don’t require users to identify themselves is that they help hide the source of funds, adding that "this is a common tactic used by criminal organizations that launder money."

In any case, the investigation is still ongoing, as police continue to analyze the transaction data obtained from TradeOgre, and charges may follow.

The RCMP began looking into the platform in June 2024, after receiving a tip from Europol.

"Specifically, it failed to register with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) as a money services business and did not identify its clients," the police said.

Meanwhile, the news sparked backlash from the crypto community. Popular blockchain sleuth ZachXBT, who collaborates with law enforcement, criticized the RCMP for not prosecuting other threat actors.

Additionally, security expert and researcher Taylor Monahan from MetaMask, the most popular ethereum (ETH) wallet, reacted: "Sorry to contradict your 'beliefs' but last time I checked, my friends and I are not criminals."

"Very much looking forward to seeing the evidence, and for you to provide recourse to ALL innocent parties you stole money from without notification and without due process," she added.

Evan Thomas, General Counsel at Alluvial, a company developing crypto staking products, emphasized that the police likely obtained a court order to seize the crypto assets, as this is permitted by the Canadian Criminal Code in cases "where there are reasonable grounds to believe it is proceeds of crime."

"Unfortunately, anyone who has their crypto tied up in this will probably need a good criminal lawyer to take a run at the warrant or convince the police/court to return what’s theirs," Thomas concluded.

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