In a landmark cross-border initiative, the United States Secret Service has partnered with Canadian law enforcement and securities regulators to launch Operation Avalanche, a coordinated effort to dismantle a growing threat in the crypto space: approval phishing.

Spearheaded alongside the British Columbia Securities Commission and supported by agencies such as the Royal Canadian Mounted Police and multiple provincial securities commissions, the operation brought together an ecosystem of stakeholders—including crypto trading platforms, blockchain analytics firms, and regulators—to assist victims caught in a sophisticated $4.3 million scam.

Operation Avalanche: A Multi-Agency, Multi-National Response

Approval phishing is a deceptive tactic where scammers trick users into unknowingly granting permissions to their crypto wallets—typically through fraudulent links or fake transaction prompts. Once access is granted, bad actors can directly drain assets, particularly from Ethereum-based wallets, without requiring further interaction. These scams often rely on social engineering, convincing victims that they are taking legitimate actions to protect or use their assets.

Forensic analysts from the Secret Service’s Washington Field Office played a key role in tracking scam-related transactions and identifying affected users. Working closely with Canadian authorities, they helped notify nearly 100 victims and prevent further losses.

WFO Special Agent in Charge Matt McCool emphasized the ongoing commitment to cross-border collaboration:

“We will continue working with Canadian law enforcement and financial partners to identify and seize stolen assets to return to victims.”

Notably, Chainalysis, a leading blockchain intelligence firm, was instrumental in tracing illicit flows and flagging compromised wallets. This real-time coordination enabled authorities to rapidly warn users, advise them on securing their wallets, and contain the damage.

Raising the Bar for Crypto Fraud Prevention

Operation Avalanche sets a new benchmark for how international agencies can collectively tackle crypto-related fraud. Its success underscores the increasing sophistication of law enforcement in the digital asset space—where speed, technology, and cooperation are essential.

This initiative also comes on the heels of broader efforts worldwide to combat crypto scams. For example, Australia recently shut down over 90 companies linked to fraudulent crypto operations, signaling a global push toward consumer protection and regulatory enforcement.

Meanwhile, the threat landscape continues to evolve. In a separate incident, the ZK token project suffered a breach that resulted in a $5 million loss from an admin wallet—further highlighting the urgent need for better wallet security and smarter user awareness.

Ongoing Efforts to Counter Crypto Fraud

With the crypto market growing at an unprecedented pace, scams like approval phishing are becoming more frequent and more damaging. The U.S. Secret Service, along with its international partners, is stepping up efforts to mitigate these threats—leveraging blockchain forensics, public-private collaboration, and swift action to protect users across borders.

Operation Avalanche not only showcases what’s possible when agencies work together, but it also serves as a model for future responses to crypto-enabled crime.