Crypto-Related Crimes on the Rise in Canada

Crypto Crimes on the Rise in Canada

As cryptocurrencies gain mainstream adoption, incidents of crypto-related crimes are becoming more common in Canada. A recent Bank of Canada report suggests that these scams may be discouraging some people from investing in digital assets. Here are the key points:

Crypto investment scams in Canada reached record highs in 2022, with Canadians losing $308.6 million to fraud, almost double the amount lost in the previous year.
There have also been cases of armed home invasions targeting individuals’ cryptocurrency holdings.
In one incident, two armed men entered a Calgary residence and forced the homeowner to reveal his cryptocurrency wallet private keys.
Although the stolen cryptocurrency was traced to a specific wallet, no connection could be established between the thief and the home invasion.
Another noteworthy case involved a senior who lost over $7.5 million in an elaborate cryptocurrency scam.

Warnings and Financial Losses

Canadian financial regulators have issued warnings about crypto-related crimes, but Canadians continue to fall victim to scams. Here are the main points:

Multiple agencies, including the B.C. Securities Commission and the RCMP, report significant financial losses due to crypto scams.
British Columbians lost $24 million to crypto scams in 2022, while nationwide, Canadians lost $530 million to various fraud and cybercrimes.
More than a third of Canadian crypto traders have fallen victim to scams, highlighting the prevalence of fraud in the industry.
These crimes have led to a decline in digital asset ownership in Canada.

Decline in Crypto Ownership

Due to the increasing number of high-profile crypto-related crimes, ownership of digital assets in Canada has dropped. Here are the key points:

Ownership of Bitcoin and altcoins in Canada has declined, indicating a possible exodus from the crypto market.
The Bank of Canada’s data shows a stalling of crypto adoption following the rapid growth seen in 2021.
Chainalysis’s mid-year crime report, however, indicates a decrease in crypto-related crime this year.
Canada ranks 22nd in the world for crypto adoption, with a below-average adoption score compared to peer nations.

Hot Take

The rise in crypto-related crimes in Canada is a cause for concern, as it not only leads to significant financial losses but also erodes trust in digital assets. The decline in crypto ownership suggests that Canadians are becoming more cautious about investing in cryptocurrencies. To mitigate the risks, it is essential for individuals to stay informed about common crypto scams and to exercise caution when engaging in crypto-related activities.