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Last year, we launched our first public-private partnership, Operation Spincaster, a new initiative aimed at eradicating and preventing fraud through globally coordinated, short-term, targeted action. Since then, we have completed seven successful operations around the world, achieving tangible and meaningful results.
As fraud continues to grow in scale and sophistication, governments around the world are stepping up their efforts. We play a vital role in this global fight. With our support, law enforcement agencies can now not only combat fraud more effectively, but also confidently conduct autonomous, short-term, focused operations.
Over the past six months, we have worked closely with agencies across North America, including with the Delta Police Department earlier this year, and more recently with Project Atlas, led by the Ontario Provincial Police (OPP) , and Operation Avalanche, led by the BC Securities Commission . These efforts have uncovered a combined total of more than $74 million in losses and led to the freezing of tens of millions of dollars in illicit funds.
Through advanced blockchain analysis, expertise, and cross-border collaboration, Chainalysis contributes to strengthening the collective defense against cryptocurrency fraud.
Project Atlas: Preventing Over $70 Million in Cryptocurrency Fraud
Led by the OPP's Cyber-Enabled Fraud Team (CEFT), Project Atlas is a victim-centric initiative aimed at identifying and combating investment fraud. It brings together international and domestic law enforcement agencies and private companies, including the Royal Canadian Mounted Police, Canadian Anti-Fraud Centre, National Cyber Crime Coordination Centre, United States Secret Service (USSS), Ottawa Police Service, Sûreté du Québec, Autorité des marchés financiers, Ndax, and Coinbase.
The project began in Canada and has now expanded to 14 countries around the world (including Canada, the United States, Australia, Germany, and the United Kingdom), identifying the cryptocurrency wallet addresses of over 2,000 victims. This international reach demonstrates that cryptocurrency fraud is spreading across borders and that cooperation among countries is essential for effective countermeasures.
Project Atlas' work has uncovered over $70 million in cryptocurrency fraud losses. Chainalysis and OPP have identified victim funds and worked with the U.S. Secret Service to seize them. Additionally, in collaboration with Tether, over $50 million in USDT was blacklisted, preventing fraudulent transfers and liquidation.
This rapid response demonstrates that ecosystem-wide partnerships, from law enforcement to the private sector, and the power of advanced blockchain analytics can produce significant real-world results, immediately raising barriers to money laundering and preserving opportunities for victim fund recovery.
Operation Avalanche: Combating Fraud on Ethereum
Building on Project Atlas, Operation Avalanche is a strategic initiative led by the BC Securities Commission to strengthen its response to fraud occurring on the Ethereum blockchain, with a focus on identifying and assisting victims in Canada.
The operation identified over $4.3 million in losses from Ethereum-related fraud. Chainalysis supported the operation by providing blockchain intelligence, investigative expertise, and strategic advice.
A wide range of Canadian law enforcement and regulatory agencies are also participating, including Ontario Provincial Police, Alberta Securities Commission, Autorité des marchés financiers, Ontario Securities Commission, Delta Police Department, Vancouver Police Department, and the Royal Canadian Mounted Police. Victims in the United States are also being identified through the cooperation of the U.S. Secret Service Washington Field Office.
Fraud investigations present unique challenges, as they combine offline social tactics with complex on-chain transactions that traditional investigations cannot uncover. Investigations are also hampered by a lack of victim reporting.
However, the blockchain's immutable record of transactions gives investigators unprecedented visibility. Advanced blockchain analysis tools can decipher cryptocurrency movements into clear criminal patterns, enabling law enforcement to identify and disrupt fraud networks.
The Chainalysis Reactor graph below shows that fraudsters are becoming increasingly sophisticated in their money laundering methods, but blockchain analysis and the right investigative techniques can identify aggregation points of funds, leading to opportunities for asset seizure and recovery.
Chainalysis' Strengths: From Reactive to Proactive Measures
More than just success stories, Project Atlas and Operation Avalanche represent a fundamental shift in how law enforcement approaches cryptocurrency crime. With Chainalysis' help, agencies are moving from a reactive approach to a proactive one .
Our blockchain analytics platform supports this transformation with these key capabilities:
- Real-time Intelligence: Chainalysis Reactor provides instant visibility into cryptocurrency flows, enabling rapid identification of criminal networks and victim funds.
- Cross-Chain Analysis: Leverage Chainalysis Data Solutions to search for known fraud signatures across multiple blockchains, automatically alerting you to related activity and quickly identifying opportunities to freeze or seize funds.
- Global Collaboration: Chainalysis collaborates with public and private organizations in over 70 countries, enabling intelligence sharing and collaborative investigations with unprecedented precision.
- Industry collaboration: Partnerships with major cryptocurrency exchanges and service providers allow for immediate action against criminal activity (freezing accounts and blacklisting assets).
A new model for combating fraud
Operation Spincaster established a framework for rapid, targeted fraud prevention, and its success in North America demonstrates that this model can scale across borders and jurisdictions. We are proud to support law enforcement agencies in the U.S. and Canada and are committed to expanding globally.
The future of combating cryptocrime lies in a proactive, collaborative, analytics-driven approach. Chainalysis' blockchain intelligence empowers law enforcement agencies around the world, building a safer digital financial ecosystem, one success story at a time.
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