Three Ottawa victims identified in cryptocurrency scam: OPP

One victim lost “six figures” and another lost around $10,000. Surprisingly, one victim made money off the scam.

Published Dec 30, 2024  •  Last updated 5 hours ago  •  2 minute read

Victims may see a “deceptive advertisement” on social media that can encourage them to invest as little as 250 dollars and download entry software that can teach them to open their crypto wallet. Photo by Kin Cheung /THE ASSOCIATED PRESS

Three Ottawa residents have been identified as victims of a global cryptocurrency scam, according to the Ottawa Police Service (OPS).

The Ontario Provincial Police (OPP) said in a recent statement that they helped prevent organized crime groups from stealing more than 70 million in cryptocurrency through Project Atlas, an initiative to combat global cryptocurrency investment fraud. An additional 24 million in fraudulent losses has been frozen.

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However, OPP hasn’t yet been able to point to any arrests as a result.

Detective Constable John Armit said the OPP provided “investigative leads” to authorities abroad. He said the goal of the project was to focus on identifying and supporting victims since the OPP tackled the investigation with a “victim-centric approach.”

“We know the bad actors are not in Canada,” Armit said. “It’s not within Canadian jurisdiction to make an arrest, technically, since it’s an abroad crime.”

Armit said investigators identify compromised crypto-wallet addresses but it is a “challenge” since cryptocurrency is mostly pseudo-anonymous.

“Our investigation observed the victim’s transaction with the criminals via the public blockchain ledger,” Armit explained. “Our project was able to interrupt additional funds from being lost by notifying crypto exchanges and providing leads to police services around the world, ”

OPS Acting Inspector Cameron Graham said the Ottawa victims include a senior resident, a middle-aged person and a young person looking into investment.

One victim lost “six figures” and another lost around $10,000. Surprisingly, Graham said, one person actually made some money off the scam since they were alerted early by the OPS. He did not specify how this happened.

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Armit said victims may see a “deceptive advertisement” on social media that can encourage them to invest as little as 250 dollars and download entry software that can teach them to open their crypto wallet.

“They’re taken to a platform or website that basically shows them how much their investments have increased, which is all fake,” Armit said, but it leads to people investing even more of their money.

And when people want to take their money, they are told they have to pay a “crypto tax,” explained Mike Bickerton, director of OPP’s Cyber-Enabled Fraud Team, adding that the fraudsters utilize cryptocurrency technology to allow fund transfers globally and facilitate money laundering operations.

Bickerton said he urges community members to learn more about cryptocurrency investment frauds.

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