Secret Service & Canada Target $4.3 M Ethereum Phishing Scam in “Operation Avalanche”

In an April 16 press release, the U.S. Secret Service collaborated with Canadian officials on a project dubbed “Operation Avalanche” with the goal of identifying compromised wallets on the Ethereum blockchain.

U.S. Secret Service Tackles Crypto Crime

Working with the BC Securities Commission, forensic analysts with the United States Secret Service Washington Field Office worked to warn crypto fraud victims about the loss and potential loss of their assets due to an ongoing approval phishing scam.

According to the press release, “Operation Avalanche” utilized “securities regulators, multiple Canadian police agencies, crypto trading platforms and a blockchain analysis firm” in its efforts to curb crypto crime and assist victims affected by the $4.3 million scheme.

Breaking:
U.S. Secret Service & Canadian authorities just cracked down on an Ethereum “approval phishing” scam in Operation Avalanche.

They traced wallets that lost $4.3M to the scheme.

Scammers beware — the blockchain never forgets.#Ethereum #CryptoSecurity #Web3 #ScamAlert pic.twitter.com/u1muN872aD

— Crypto Navigator (@krypto_navigatr) April 16, 2025

“Our analysts from the Washington Field Office provided Canadian officials with the help needed to disrupt this scheme and prevent bad actors from continuing to receive stolen funds,” said WFO Special Agent in Charge Matt McCool.

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

Canadian And U.S. Officials Counter Ethereum Scam

According to blockchain analytics firm Chainalysis, Approval Phishing occurs when a scammer convinces a victim to sign illicit blockchain transactions, giving the crypto fraudster access to the user’s wallet.

From there, the scammer can send and drain coins from the victim’s account – in this case, on the Ethereum blockchain.

“The operation is an example of how the U.S. Secret Service’s investigative expertise, resources, and long-standing global law enforcement partnerships can aid in disrupting cryptocurrency scams orchestrated by transnational organized crime,” the press release continued.