Canadian securities regulators have joined a coordinated international enforcement initiative aimed at tackling the surge in crypto-asset fraud, highlighting the increasingly borderless nature of scams targeting investors.
Operation Atlantic is being conducted this week alongside law enforcement agencies and regulatory counterparts in the US and UK, focused on dismantling schemes that deceive individuals into giving criminals permission to access their digital wallets in scams known as ‘approval phishing’ which are frequently linked to cryptocurrency investment fraud, commonly referred to as ‘pig butchering’ – where fraudsters often build relationships over time.
In many cases, victims receive a fraudulent pop-up or notification designed to look like it originates from a legitimate app or platform, prompting them to approve access. After permission is granted, scammers can take control of the crypto wallet and move assets out of it. Because these transactions are typically irreversible, recovering stolen funds can be extremely challenging once the money has been transferred.
Canada’s involvement in the crackdown includes intelligence-sharing and enforcement activity designed to support the broader global effort. Regulators say the initiative reflects mounting concern about the scale and sophistication of online investment fraud, which often relies on international networks and infrastructure.
“Operation Atlantic is a strong example of the OSC’s commitment to working across borders to tackle the growing risks posed by scams,” said Bonnie Lysyk, Executive Vice President, Enforcement at the Ontario Securities Commission. “Through our partnerships with the OPP, UK National Crime Agency, and US Secret Service we are using innovative techniques, advanced tools, and extensive expertise to disrupt bad actors and protect investors from the harm they seek to cause.”
Authorities noted that crypto-related scams have evolved into more organized operations, frequently using coordinated tactics across multiple countries to reach victims and obscure the trail of stolen funds.
As part of the Operation Atlantic, investigators are targeting websites, domains and other digital tools believed to be linked to fraudulent activity. Participating agencies are also exchanging investigative strategies and data in an effort to disrupt scams more effectively and prevent further losses.
Canadian officials stressed that the operation should also serve as a caution to investors about interacting with unfamiliar platforms or approving wallet permissions without fully understanding the risks. Public education and international collaboration are expected to remain central to future enforcement strategies.
The multinational scope of the initiative underscores how difficult it can be to contain and recover funds from crypto fraud once it crosses borders — reinforcing the importance of coordinated regulatory and law enforcement action worldwide.
