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Canada and U.S. Authorities Team Up to Combat $4.3 Million Ethereum Phishing Scam

In an impressive joint effort, the U.S. Secret Service has collaborated with Canadian officials to dismantle a $4.3 million Ethereum phishing scam known as “approval phishing.”

Approval phishing techniques involve tricking victims into granting unauthorized access to their crypto wallets, often through deceptive schemes like romance scams.

Dubbed Operation Avalanche, this initiative aimed at tracking compromised wallets on the Ethereum blockchain and notifying affected users about potential losses.

The collaborative effort included prominent organizations such as the B.C. Securities Commission and various Canadian law enforcement agencies, enhancing the operation's reach and impact.

According to Special Agent Matt McCool of the U.S. Secret Service, the agency is committed to working alongside Canadian partners to recover stolen assets for victims.

Recent reports indicate that approval phishing remains a popular and costly crime in the cryptocurrency space, with estimated losses hitting $2.7 billion from May 2021 to July 2024.

While mostly targeting wealthy individuals in the crypto and NFT sectors, this scam type can also affect organizations, as seen in high-profile cases like the Badger DAO hack.

The successful disruption of the Ethereum phishing scam underscores the effectiveness of global law enforcement collaboration in tackling cybercrime.

As the cryptocurrency landscape continues to evolve, such partnerships will be critical in safeguarding users and maintaining confidence in digital assets.

This operation serves as a reminder for investors to remain vigilant against scams and to exercise caution when participating in the crypto market.