The RCMP has announced the dismantling of a significant cryptocurrency platform, claiming it represents the largest crypto bust in Canadian history. The operation targeted TradeOgre, which allegedly facilitated numerous criminal transactions, leading to the recovery of $56 million in digital assets. This marks a historic first, as it is the first instance of a cryptocurrency exchange being shut down by Canadian law enforcement.
The investigation was initiated last year after receiving a tip from authorities in Europe. The Quebec division of the RCMP revealed that TradeOgre failed to register as a money services business and did not verify the identities of its users, raising serious concerns about the source of funds transacted on the platform. According to the RCMP, the lack of user identification allowed for anonymity, making it attractive for illicit activities.
The statement from the RCMP indicated a belief that a significant portion of transactions on TradeOgre originated from criminal enterprises. A screenshot of the platform displayed a notification stating, “This site and its cryptoassets have been seized by the RCMP,” reflecting the swift action taken by law enforcement.
In discussions with reporters, Sergeant Mathieu Lagarde of the Quebec RCMP mentioned that TradeOgre is suspected to have been operated by a man based in the United States, who has recently passed away. However, he declined to provide further information regarding the individual or the circumstances surrounding his death. Authorities are also reportedly unaware of any other individuals tied to TradeOgre.
The RCMP noted that the platform supported trading in over 200 different cryptocurrencies, establishing a broad global trading network. The shutdown of TradeOgre was executed through judicial authorization, allowing the police to seize associated electronic infrastructure located in Beauharnois, Quebec, southwest of Montreal.
While the cryptocurrency assets have been seized, questions linger about their future. Sgt. Lagarde indicated that the RCMP is deliberating on filing an application to officially seize the $56 million as proceeds of crime. Although the assets have been confiscated, they have not yet been forfeited.
Furthermore, aside from potential charges under the Criminal Code, the operation invoked federal legislation pertaining to money laundering and terrorist financing. Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, cryptocurrency exchanges operating within Canada are required to register federally, a requirement TradeOgre is alleged not to have fulfilled. The ongoing investigation underscores the Canadian law enforcement’s commitment to tackling illicit financial activities within the burgeoning cryptocurrency sector.
