Canadian Police Seize $41 Million in Largest Crypto Bust

Canadian police have seized $41 million in cryptocurrency from TradeOgre, the largest such seizure in the country’s history.

The operation highlights increased regulatory scrutiny of non-compliant exchanges and impacts privacy coin market stability.

RCMP Seizes Record $41 Million from TradeOgre

The Royal Canadian Mounted Police (RCMP) has conducted the largest crypto asset confiscation in Canada, seizing over $41 million from the TradeOgre exchange. This follows a probe into the platform’s legal non-compliance. According to the RCMP Eastern Region Federal Policing Division, “This also marks the first time that a cryptocurrency exchange platform has been dismantled by Canadian law enforcement.” The seizure was due to TradeOgre’s lack of FINTRAC registration, focusing mainly on privacy coins like Monero (XMR). Europol’s tip-off initiated the investigation earlier in 2024.

Privacy Coin Market Faces Heightened Pressure

The operation had an immediate effect on anonymity-focused exchanges and saw volatility in BTC and XRP. Privacy enthusiasts have faced increased regulatory pressures. Financially, the crackdown impacts privacy coin trading and liquidity, undermining user trust in non-compliant platforms. It also emphasizes Canadian commitment to combating financial crime and non-compliance.

Canada’s First Major Crypto Seizure Sets Precedent

Historically, similar seizures like BTC-e and Silk Road had led to temporary market dislocations. This marks a first for Canada, which has previously focused on legal compliance campaigns rather than outright seizures. Experts suggest increased regulatory actions in countries with existing legal frameworks could lead to stricter controls and affect market landscapes, especially for privacy-focused cryptocurrencies. The operation aligns with broader crackdowns on non-compliant or privacy-centric exchanges globally.