Secret Service Joins Canadian Police to Disrupt $4.3M Ethereum Wallet Hack

In a significant crackdown on crypto crime, the U.S. Secret Service has collaborated with the Canadian law enforcement in an operation called "Operation Avalanche" aimed at smashing a large-scale Ethereum phishing scam that had compromised users' wallets and resulted in losses of over $4.3 million.

 A Shared Mission to Protect Crypto Investors

April 16 brought a press release that announced agents from the U.S. Secret Service's Washington Field Office working in close partnership with the British Columbia Securities Commission and various Canadian law enforcement agencies. Their mission: to detect fraudulent transactions and alert victims before any further harm was done.

The phishing scheme was based on a malicious strategy called approval phishing. Chainalysis says this tactic fools victims into signing fake smart contract approvals, essentially transferring control of their crypto wallets to attackers.

After gaining access, attackers can drain wallets by making unauthorized transfers — a tactic that's increasingly popular in Ethereum-based scams.

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

Stopping Fraud with Tech and Collaboration

Besides the Secret Service and Canadian authorities, blockchain analysts, crypto exchanges, and regulatory bodies played a crucial role in tracking the scam's online trail and freezing possible fund flows.

"Our analysts were key in providing the analysis that helped Canadian partners dismantle this operation and prevent bad actors from cashing out stolen crypto," said Matt McCool, Special Agent in Charge at the Washington Field Office.

He went on to stress continued cooperation:

We will continue to collaborate with Canadian authorities and financial institutions to pursue stolen assets and recover them for victims."

Also Read: 3 Underrated Meme Coins That Could Make You a Crypto Millionaire in 2025

Operation Avalanche: A New Model for Cross-Border Cybercrime Fighting

This operation demonstrates how international law enforcement cooperation and blockchain forensic capabilities can successfully combat cryptocurrency scams. "Operation Avalanche" illustrates how international cooperation is needed as scammers continue to target decentralized finance (DeFi) platforms.

Government officials say investigations continue and additional work in the months ahead is anticipated to bring perpetrators to justice and protect other possible targets.