Crypto platform users and supporters of Tradeogre have slapped the Royal Canadian seizure of the website police and its crypto, accusing the agency of retrieving funds from innocent users for the actions of a few.
The RCMP Says On Thursday it conducted “The largest cryptocurrency in Canada’s history,” taking more than 56 million Canadian dollars ($ 40.6 million) from Tradeogre, a centralized crypto exchange known for having unknown to your customer (KYC) checks.
The agency claimed that Tradeogre failed to register with Canada’s financial intelligence agency and used it for criminal currency.
RCMP announcement was the first official update to the exchange, which has been offline and quiet for months, leading many users to change advocacy for others Self -customody their owners.
RCMP said the tradeogre takedown was first
The RCMP said Tradeogre’s takedown was “the first time a cryptocurrency exchange platform has been dismantled by Canadian law enforcement.”
It said the money investigation team started with laundering looking at Tradeogre in June 2024 with a tip from Europol. The RCMP has accused the platform failed to register as a monetary service business with financial transactions and Canada (Fintrac) Review Center reviews and did not recognize its users.
“Investigators have a reason to believe that most of the funds transferred to Tradeogre are derived from criminal resources,” the RCMP claimed.
“The basic attraction of this type of platform, which does not require users to identify themselves to create an account, is that it hides the source of funds,” he added. “This is a common tactic used by criminal organizations that lend money.”
But there are many other exchanges, both centralized and in a larger size decentralized, there are no KYC checks that use some or all of their features. Instead, they can implement other checks, such as blockchain analytics, to stop the poor use of their services.
The RCMP said its investigation continues and it evaluates transaction data from the platform, which can keep it up in charges.
RCMP does not immediately respond to a request for comment out of time.
Privacy is not a crime, crypto pundits argue
Tradeogre has risen in popularity for the niche list, low cost, The cryptocurrencies dedicated to privacy That usually does not make cut for larger platforms.
Tradeogre users and supporters have criticized the RCMP’s RCMP platform, focusing that many service users are not criminals and that Use A non-KYC exchange is not a crime in Canada.
“Sorry to be contrary to your ‘belief’ but the last time I checked my friends and I’m not criminals,” Says Metamask Security Lead Taylor Monahan in response to the RCMP announcement.
“It is expected to see the evidence, and for you to give back to all innocent parties you steal money from the uncharted and no appropriate process.”
Reuben Yap, a former Crypto Firo’s Crypto-focused lawyer and co-founder, asked what the RCMP would do in crypto that came from legitimate resources.
“You’re just saying that you can lose everyone’s balances because we’re not KYC? That’s theft from many innocent users,” he added.
The anger reported A possible RCMP takedown of Tradeogre on Tuesday, as a bitcoin Transaction Tied to the tradeogre is embedded in the message “Crypto Assets controlled by the RCMP.”
Crypto users are watching life signs from the exchange after the last X account last post in May, and its site was obtained on July 30.
Asset recovery can be difficult and expensive
Innocent tradeogre users are likely to have a way to claim their funds seized by RCMP, but Firo’s yap warned It’s “probably a long and difficult process with many ways to go wrong.”
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He said the US government’s seizure of Crypto Exchange BTC-E In 2017 was an example of how “complex procedure” could be, with strict deadlines and simple mistakes that could “kill claims.”
Yap added that the burden of evidence needed to recover the property “is immense,” along with those affected to provide “extensive documentation of Onchain and Offchain” to prove their holdings.
“There is also the issue of appreciation of the property,” he added, noting the government’s position, in most cases, to appreciate the ownership such as at the time of seizure.
If the crypto cost increases, Yap said that “even the successful claimants will still return a portion of the subsequent amount of their owner.”
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