Victoria Police Utilize New Federal Legislation to Recover Stolen Cryptocurrency
Victoria Police have successfully leveraged recent federal digital asset seizure legislation to recover $80,000 in stolen cryptocurrency and return it to an 84-year-old victim in Victoria. This case marks a significant milestone as it is the first instance where this new legislation has been implemented in British Columbia.
The incident began when the elderly man became the target of an elaborate tech support scam, leading to the theft of $110,000 in cryptocurrency from his accounts. The investigation was initiated in December 2024, when the elderly victim reported unauthorized transactions draining his cryptocurrency holdings.
Understanding the Scam
According to reports from Victoria Police Department (VicPD), the senior was facing issues with his cell phone and utilized a voice assistant to find the contact number for TELUS Tech Support. Upon calling, he was connected to an individual who claimed to be a tech support representative. The impostor successfully gained remote access to the victim’s phone under the pretense of helping solve the technical difficulties.
While the suspect effectively addressed the initial problem with the phone, the true nature of the call was far more sinister. Following this interaction, the victim discovered that $110,000 had been fraudulently transferred from his cryptocurrency accounts, a realization that completely turned his experience upside down.
Investigation and Discovery of the Suspect
After being alerted to the unauthorized transactions, VicPD promptly launched an investigation that led them to identify a suspect based in South Africa. By utilizing advanced tracking techniques, the police were able to trace the stolen funds through multiple accounts on a cryptocurrency exchange platform.
With the cooperation of cryptocurrency exchanges and through meticulous analysis of transaction patterns, VicPD compiled a tracing chart that outlined the flow of the stolen funds. This collaborative effort underscored the importance of international cooperation when addressing cyber crimes.
Seizing and Returning Stolen Assets
In May 2025, VicPD was able to seize $80,000 of the stolen funds, which were subsequently returned to the victim. This recovery was made possible by the newly enacted digital asset seizure legislation in Canada, demonstrating the effectiveness of modern legal frameworks in combating cybercrime.
VicPD’s announcement highlights the significance of this case and the advancements in law enforcement’s ability to tackle high-tech fraud. The department expressed pride in being the first police agency in British Columbia to utilize this ground-breaking legislation, reinforcing their dedication to innovating in the fight against cybercrime.
The New Legislation: Special Warrant to Seize Digital Assets
The success in recovering the stolen funds can be attributed to federal legislation introduced in 2024, allowing law enforcement to obtain a Special Warrant to Seize Digital Assets. This legal tool enabled police to freeze not only the digital assets but also the cryptocurrency accounts involved in fraudulent activities.
The framework established under Bill C-47, which includes a new section of the Criminal Code, grants police the authority to conduct searches for digital assets using computer programs. This capability, specific to the proceeds of crime, is modeled after existing laws governing traditional search and seizure operations.
The new legislative provisions empower law enforcement agencies to seize, detain, and ultimately return digital assets, similar to other established regulations. Sgt. Simon de Wit, supervisor of VicPD’s Cyber Crime Unit, emphasized the significance of this new legislation as an essential tool in pursuing stolen digital assets and enhancing efforts against evolving scams.
Impact of Cryptocurrency Fraud in British Columbia
The incident involving the elderly man is part of a larger trend, as police have noted alarming statistics regarding cryptocurrency fraud in British Columbia. In the fall of 2024, VicPD participated in a collaborative event called Operation DeCloak, alongside the Delta Police and blockchain analytics firm Chainalysis. This initiative revealed that 1,100 individuals worldwide fell victim to cryptocurrency fraud, with a notable number of these cases affecting Canadians. The total losses attributed to these scams exceeded $35 million among British Columbians.
Recognizing the seriousness of this issue, VicPD urges the community to remain vigilant and report any instances of fraud immediately. Early reporting is critical, as it increases the chances of recovering stolen funds before they can be moved to inaccessible locations.
Community Awareness and Prevention
Law enforcement agencies, including VicPD, are actively working to educate the public about the dangers of cryptocurrency scams and how to identify potential red flags. The rise in sophisticated scams highlights the necessity for individuals to be informed and cautious when engaging in transactions involving digital currencies.
The police department encourages individuals to report crime as soon as it occurs, urging victims of cryptocurrency fraud to contact the appropriate channels like the E-Comm Report Desk and the Canadian Anti-Fraud Centre without delay. Prompt action can significantly aid in recovering funds and preventing further victimization.
Conclusion
The successful recovery of the stolen cryptocurrency reflects the ongoing evolution of law enforcement strategies in response to the growing threat of cybercrime. With new legislation in place, police in British Columbia are better equipped to tackle complex fraud cases, demonstrating a commitment to protecting the community from sophisticated scams. By raising awareness and encouraging timely reporting, VicPD strives to curb the impact of cryptocurrency fraud and promote safer interactions within the digital economy.
