Quick Breakdown
- RCMP seized $40.6M from TradeOgre, Canada’s largest crypto seizure to date.
- Users say the takedown unfairly punished non-criminals who used the non-KYC exchange.
- Asset recovery could be drawn-out, costly, and based on outdated valuations.
The Royal Canadian Mounted Police (RCMP) has seized over 56 million Canadian dollars ($40.6 million) from crypto exchange TradeOgre, marking the largest cryptocurrency confiscation in the country’s history. The move has triggered an outcry from users and privacy advocates, who accuse the agency of unfairly targeting innocent investors.
First Canadian exchange shutdown by law enforcement
The RCMP stated on Thursday that its money laundering unit initiated an investigation into TradeOgre in June 2024, following a tip from Europol. The exchange was accused of failing to register with Canada’s Financial Transactions and Reports Analysis Centre (FINTRAC) and of facilitating criminal money laundering.
The platform, known for operating without KYC checks, went offline on July 30 after months of silence, fueling speculation about a government intervention.
Users slam RCMP: “Privacy is not a crime”
TradeOgre gained popularity for supporting smaller, privacy-focused cryptocurrencies often excluded from bigger exchanges. Its supporters now argue that the RCMP’s actions punished ordinary users.
“Last time I checked, my friends and I are not criminals,”
said Taylor Monahan, security lead at MetaMask, calling the seizure
“theft without due process.”
Reuben Yap, co-founder of privacy coin Firo, questioned whether Canadian authorities had the right to seize assets that originated from legitimate sources, saying:
“Are you just saying you can forfeit everyone’s balances because we didn’t KYC?”
Recovery likely long and costly
While innocent users may have a chance to claim their funds, Yap warned the process could mirror the BTC-e seizure in 2017, which forced victims into complex legal procedures. Claimants often had to provide extensive documentation and faced strict deadlines.
Yap also noted that governments typically return assets based on their value at the time of seizure, meaning users could miss out on future gains even if they recover their holdings.
The RCMP says its investigation into TradeOgre is ongoing, with the possibility of criminal charges to follow..
Meanwhile, Global authorities, in partnership with blockchain intelligence firms, have seized more than $300 million in cryptocurrency linked to cybercrime and fraud through two primary coordinated operations.
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