• The Lethbridge Police Service in Canada has deployed Chainalysis Reactor to combat crypto scams and help victims retrieve stolen funds.
• By using the software, law enforcement can trace crypto transactions and identify legitimate and illegal services.
• Canadians lost $300 million due to investment fraud in 2022, largely attributed to crypto-related scams.
Canada Combats Crypto Scams
The Lethbridge Police Service (LPS) in Canada is incorporating technology to combat crypto scams and assist victims in retrieving funds. By deploying Chainalysis Reactor, law enforcement aims to trace crypto transactions and recover stolen funds.
Chainalysis Reactor Software
The software can identify and categorize millions of addresses, including those of illegal and legitimate services. Police will rely on a certified blockchain analysis investigator from the Economic Crimes Unit. Chainalysis Reactor software allows for the meticulous tracing of crypto transactions, taking advantage of the transparent nature of public blockchains like Ethereum or Bitcoin from which most of these stolen tokens are deployed.
To investigate cases, relevant data will have to be inputted. The program will then systematically trace the journey of funds from victims’ wallets to exchanges. Once the exchange is identified, investigators will obtain judicial authorization to access account holder details, transaction histories, and outgoing transfers.
Helping Victims Recover Funds
Even so, while apprehending and prosecuting wrongdoers remains a priority, the main goal is to help victims of crypto scams get their money back. Police will turn to blockchain analysis to track transactions and find where stolen coins are kept.