Users accuse RCMP of punishing innocent investors in historic crackdown
Canadian authorities have seized more than $40 million in cryptocurrency from the little-known exchange TradeOgre, in what the Royal Canadian Mounted Police (RCMP) called the country’s largest crypto seizure to date. While officials claim the platform enabled money laundering, many supporters argue the move amounts to “theft from innocent users.”
RCMP Labels It a First-of-Its-Kind Action
The RCMP said its money laundering investigations team, working with Europol, began examining TradeOgre in mid-2024. Investigators alleged the platform failed to register with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) and provided services without verifying customer identities.
“This marks the first time Canadian law enforcement has dismantled a cryptocurrency exchange,” the RCMP announced, claiming that most funds on TradeOgre were tied to criminal activity.
TradeOgre, popular among traders of privacy-focused and low-cap tokens, did not require Know Your Customer (KYC) checks. While critics say that made it attractive to criminal networks, supporters insist the majority of users were law-abiding.
“Last time I checked, my friends and I are not criminals,” said Taylor Monahan, a security lead at MetaMask, criticizing the lack of due process in the seizure.
Similarly, Reuben Yap, co-founder of privacy coin Firo, questioned whether the RCMP had the right to seize legitimate funds. “Are you just saying you can forfeit everyone’s balances because we didn’t KYC? That’s theft from many innocent users,” he argued.
Recovery Process Could Be Long
Experts note that recovering assets through government seizure claims is often costly and complex. Yap pointed to the U.S. takedown of BTC-e in 2017 as an example, where strict documentation requirements left many users unable to reclaim funds.
“The burden of proof is immense,” he said. “Even successful claimants are likely to be repaid only at the value of the assets on the day of seizure.”
The TradeOgre case highlights a broader global debate: should the right to financial privacy outweigh regulatory oversight? While authorities say enforcement is necessary to stop money laundering, critics warn that innocent crypto investors risk being caught in the crossfire.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.