Canadian police dismantle cryptocurrency exchange and seize $56M

The Royal Canadian Mounted Police (RCMP) have taken down cryptocurrency trading platform TradeOgre and recovered over $56 million worth of cryptocurrency.

The Money Laundering Investigative Team (MLIT) launched an investigation into TradeOgre in June 2024, following a tip from Europol. The inquiry showed that the trading platform broke Canadian laws and rules.

Specifically, it failed to register with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) as a money services business and did not identify its clients through Know Your Customer (KYC) policies. Because of this anonymity, the trading platform was used by cybercriminals to transfer cryptocurrencies and launder money.

“Investigators have reason to believe that the majority of funds transacted on TradeOgre came from criminal sources. The main attraction of this type of platform, which doesn’t require users to identify themselves to make an account, is that it hides the source of funds. This is a common tactic used by criminal organizations that launder money,” the Royal Canadian Mounted Police state in a press release.

Over $56 million was seized from the platform, as investigators believe that the money comes from criminal activities. In a response to BleepingComputer, the RCMP said that it could not confirm that all of the seized cryptocurrencies originated from illegal transactions.

“We are not in a position to comment on whether specific types of criminal activity, such as extortion payments, were transacted through the platform, nor can we provide details about the criminal sources that may have used it for money laundering,” the RCMP commented.

Users who try to visit TradeOgre’s website get to see a so-called splash page, informing them that the site and its cryptoassets have been seized by the RCMP. The transaction data obtained from the platform will be analyzed, and charges may follow.

Lastly, the Royal Canadian Mounted Police told BleepingComputer that non-criminal customers of TradeOgre “may have recourse through the Canadian court system if the RCMP decides to pursue the forfeiture of the cryptocurrency in question.”