Lucía Peña
The US Secret Service, in collaboration with Canadian authorities, has successfully disrupted a $4.3 million Ethereum phishing operation, according to an official statement released on Wednesday. The joint investigation, dubbed “Operation Avalanche”, focused on identifying and warning victims whose digital wallets were compromised through an increasingly common crypto scam known as “approval phishing.”
In this operation, the Secret Service’s Washington Field Office worked alongside the British Columbia Securities Commission (BCSC), various Canadian police units, blockchain analysis experts, and crypto exchanges. The goal: to locate Ethereum wallets that had been illegally accessed and assist victims before more losses occurred.
“By leveraging a broad network of enforcement and financial intelligence, we were able to detect malicious wallet activity and notify wallet holders that they were targets of fraud,” the statement said.
What is Approval Phishing in Crypto?
Approval phishing scams trick users into unknowingly authorizing malicious smart contracts, which grant attackers permission to access and drain funds from their crypto wallets. Once a user signs a seemingly harmless transaction, scammers can exploit the wallet without needing further interaction.
US Secret Service Stresses Ongoing Crypto Enforcement
Special Agent in Charge Matt McCool emphasized the agency’s continued dedication to fighting crypto-related crime:
“Our analysts provided critical support to Canadian officials to halt this phishing scheme and protect victims’ digital assets,” he said. “We’re committed to working with international partners to seize stolen funds and return them to rightful owners.”
This operation follows the Secret Service’s recent seizure of domains linked to Garantex, a Russian crypto exchange, along with the freezing of several associated digital assets.
Crypto Security Remains a Global Priority
As blockchain adoption increases, so do scams targeting inexperienced or unknowing users. With more phishing attacks affecting retail and institutional investors alike, international coordination between enforcement agencies is becoming an essential defense line.
