Canadian authorities have confiscated more than 56 million Canadian dollars ($40 million USD) in cryptocurrency from the TradeOgre exchange, marking the country’s largest crypto seizure and the first complete dismantling of a digital asset platform.
Largest Crypto Confiscation in Canadian History
The seizure, announced Thursday, followed a year-long investigation that began in June 2024 after Europol tipped off the RCMP’s money laundering unit. Working with blockchain analytics firm Arkham Intelligence, investigators traced illicit transactions tied to the exchange.
Authorities found that TradeOgre had bypassed Canada’s mandatory registration and Know-Your-Customer (KYC) requirements. The RCMP stated that the exchange failed to register with Fintrac as a money services business and was widely used by criminal networks.
Warning Signs and Shutdown
Speculation about the exchange’s operations grew in July when its website went offline and its X account stopped posting. Frustrated users took to Reddit, questioning whether they had been scammed. Soon after, funds linked to the exchange were moved to wallets that displayed the message: “This site and its cryptoassets have been seized by the RCMP.”
The RCMP explained, “The main attraction of this type of platform, which doesn’t require users to identify themselves, is that it hides the source of funds. This is a common tactic used by criminal organizations that launder money.”
No Arrests, but a Strong Statement
Although no arrests have been made, Canadian authorities have completely dismantled the platform. This move sends a strong message about the country’s intent to enforce compliance in the crypto sector.
Canada has long been a leader in crypto regulation, introducing anti-money laundering laws and issuing heavy fines for noncompliance. The TradeOgre case is now the first in which an entire exchange has been taken down for money laundering violations.
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FAQs
The case marks Canada’s largest crypto seizure and the first time an entire exchange has been dismantled for money laundering, signaling a strong regulatory crackdown.
No arrests have been announced, but Canadian authorities successfully shut down the platform entirely, sending a clear message about enforcing compliance.
Authorities are concerned with how unregulated exchanges without mandatory KYC requirements hide the source of funds, enabling criminal organizations to launder money.
