• Canadian police deploy Chainalysis Reactor to combat crypto scams
• The software can identify and categorize millions of addresses, including those of illegal and legitimate services
• Binance exited Canada due to new guidelines for crypto exchanges
Canadian Police Deploy Blockchain Analysis Software
The Lethbridge Police Service (LPS) in Canada is incorporating technology to combat crypto scams and assist victims in retrieving funds. By deploying Chainalysis Reactor, law enforcement aims to trace crypto transactions and recover stolen funds. The software can identify and categorize millions of addresses, including those of illegal and legitimate services. Police will rely on a certified blockchain analysis investigator from the Economic Crimes Unit.
Recovering Stolen Funds
Chainalysis Reactor software allows for the meticulous tracing of crypto transactions, taking advantage of the transparent nature of public blockchains like Ethereum or Bitcoin from which most of these stolen tokens are deployed. To investigate cases, relevant data will have to be inputted. The program will then systematically trace the journey of funds from victims’ wallets to exchanges. Once the exchange is identified, investigators will obtain judicial authorization to access account holder details, transaction histories, and outgoing transfers. Even so, while apprehending and prosecuting wrongdoers remains a priority, the main goal is to help victims of crypto scams get their money back. Police will turn to blockchain analysis to track transactions and find where stolen coins are kept.
Crypto Scams In Canada
In 2022, Canadians lost over $300 million due to investment fraud. The surge can be attributed in part to crypto-related scams, wherein enticing advertisements attract unsuspecting investors and then ensnared in fraudulent schemes. Crypto scams often involve scammers pretending to be legitimate investment firms, promising significant returns on investments by manipulating victims into transferring cryptocurrency tokens into specific wallet addresses before severing communication and disappearing with their money.
Binance Exits Canada
In May 2021, Binance – one of the world’s largest cryptocurrency exchanges – exited Canada days after the introduction of new guidelines for cryptocurrency exchanges that included constraints on investors as well as obligatory registrations were introduced by the government body responsible for regulating financial markets in this nation-state known as Investment Industry Regulatory Organization (IIROC).