The RCMP said their money-laundering team began an investigation last year after a tip from European authoritiesSupplied
The RCMP say they have taken down a cryptocurrency platform that was being used mainly for criminal transactions, in what the force claims is the largest crypto bust in Canadian history.
In a statement Thursday, the force’s federal policing wing in Quebec said it had recovered $56-million from a platform known as TradeOgre, “the first time that a cryptocurrency exchange platform has been dismantled by Canadian law enforcement.”
The Quebec RCMP said their money-laundering team began an investigation last year after a tip from European authorities. The team allegedly found that the platform had failed to register as a money-services business and did not identify its clients.
“Investigators have reason to believe that the majority of funds transacted on TradeOgre came from criminal sources,” the RCMP statement said. “The main attraction of this type of platform, which doesn’t require users to identify themselves to make an account, is that it hides the source of funds.”
The statement did not say whether police had made any arrests in connection with the seizure. It included a screenshot of the cryptocurrency exchange platform, which had been replaced with a page that read: “This site and its cryptoassets have been seized by the RCMP.”
In an interview, Quebec RCMP Sergeant Mathieu Lagarde said police believe TradeOgre was being run by a man in the United States who recently died, adding that no charges were laid against him. Sgt. Lagarde refused to identify the man or provide any details about his death. He added that no other representatives of TradeOgre are known to police.
The RCMP believe the crypto trading activity was global and involved more than 200 different currencies.
Sgt. Lagarde said the RCMP were able to shut down the exchange by getting judicial authorization to seize the electronic infrastructure that allegedly facilitated the trading – computers in Beauharnois, Que., a community southwest of Montreal.
Questions remain about the fate of the cryptocurrency assets.
Sgt. Lagarde said police are considering whether to file an asset-forfeiture application to have the $56-million in cryptocurrency declared as proceeds of crime. “It’s seized but it’s not forfeited yet,” he said.
While the Mounties are contemplating potential Criminal Code charges in the case, there are other laws in play. Police executed the seizure under federal legislation.
Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, cryptocurrency exchanges that operate in Canada must register federally.
TradeOgre had not done so, Sgt. Lagarde alleged.