By James Davis
Crypto Scams in Canada
Canadian police operating in the province of Calgary, Alberta, have reported that over $22 million has been lost to crypto scams since the start of the year. According to the police, Alberta residents have fallen victim to 342 cryptocurrency scams since January. By comparison, 322 scams were reported last year, which put investors into a collective loss of $4.1 million.
The Calgary police acknowledge the legitimacy of many crypto assets but admit that the lack of regulations has made the crypto space ideal for scammers.
Calgary is the heart of the oil industry in Canada. A few months ago, the Economist Intelligence Unit ranked Calgary as one of the top ten most liveable places in the world.
Most Canadians Have Fallen Victim to Investment Scams, Police Says
Meanwhile, the police in this region say most Canadians have lost their money through investment scams, which involve scammers promising high returns on investment to their victims if they send them a certain amount of crypto.
A good example of such a scam would be fraudsters who posed as Bitcoin billionaire Michael Saylor to defraud people by promising to double their BTC holdings after transferring some Bitcoin to the bad actors’ crypto wallets. In February 2022, one victim sent BTC worth over $1 million to the scammers.
The Canadian police are now asking residents to avoid investing in crypto projects that promise huge returns. Moreover, Canadians have been warned against engaging with social media users who mention crypto investments as they are likely scammers.
Chainalysis Report for Crypto Scams in 2023
According to the latest report published by Chainalysis, crypto scams account for a significant percentage of the funds lost in the crypto market this year. The blockchain analytics company reports that over $3.35 billion has been lost to scammers since January. However, the report shows a decline in crypto scams this year compared to 2022.
Contrary to Chainalysis’ report, cryptocurrency scams have been on the rise in Canada this year. In June, Toronto Metropolitan University conducted research across the country in which it found that more than one-third of crypto holders had been targeted by scammers in 2023.