Canadian securities regulators, with support from the U.S. Secret Service, issued timely warnings to nearly 90 victims of Ethereum approval phishing scams during a two-day operation in March 2025. This initiative is part of a broader effort by the United States, the United Kingdom, and Canada to combat cryptocurrency fraud and prevent further losses.
The operation, codenamed "Operation Avalanche," was led by the BC Securities Commission (BCSC) and took place from March 11-12, 2025. Regulators utilized blockchain technology to identify compromised Ethereum wallets, trace their owners, and contacted 89 victims via phone or email, successfully halting additional illicit fund transfers.
Operation Avalanche's Practical Outcomes
Operation Avalanche was a Canadian-led initiative, not a formal joint government operation between the three countries. Confirmed participating agencies included the BC Securities Commission, Alberta Securities Commission, Ontario Securities Commission, Autorité des marchés financiers du Québec, Delta Police Department, Vancouver Police Department, Royal Canadian Mounted Police, and the U.S. Secret Service.
The operation focused on prevention rather than prosecution. Instead of concentrating on apprehending overseas fraudsters, regulators leveraged blockchain intelligence to proactively identify victims whose wallets were compromised through approval phishing and directly alerted them.
Lori Chambers of the BCSC explained the shift in strategy: "Our traditional methods of investigation, prosecution, and sanctions are no longer effective against these criminal groups, who often operate across borders and are difficult to reach."
The 89 victims contacted during Operation Avalanche represent just a fraction of the operation's impact. The underlying scam, Ethereum approval phishing, tricks users into signing authorization transactions that grant attackers the ability to freely withdraw assets from their wallets.
How US, UK, Canada Cooperation Fits into Broader Crackdown
Describing this as a joint US, UK, and Canada operation requires careful consideration. There is no official confirmation of direct UK involvement in Operation Avalanche itself. The UK's participation appears to stem from a related, but distinct, operation: Operation Spincaster, coordinated by blockchain analytics firm Chainalysis.
Operation Spincaster spanned six countries, including the United States, the United Kingdom, Canada, Spain, the Netherlands, and Australia. This broader initiative generated over 7,000 scam-related leads, involving approximately $162 million in losses.
Danny Leong commented on the cross-border collaboration: "These types of scams are not unique to Canada, and by working with Chainalysis, we are part of a larger global effort to combat this criminal activity."
It is crucial to distinguish between these two operations. Operation Avalanche was a specific enforcement action by Canada, with confirmed participation from the U.S. Secret Service. Operation Spincaster, on the other hand, is a wider, multi-country framework that includes the UK. Both target cryptocurrency fraud, but they are not the same initiative. Readers looking for a single, trilateral government joint announcement may not find one, as this cooperation is structured through overlapping projects rather than a singular action.