The Royal Canadian Mounted Police (RCMP) Federal Policing – Eastern Region has announced the largest cryptocurrency seizure in Canadian history, after seizing more than 56 million Canadian dollars (approximately $40 million) from the platform TradeOgre.The operation was carried out by investigators specializing in financial crime, cybercrime, and cryptocurrencies. It is also the first time Canadian law enforcement has dismantled a cryptocurrency exchange.Historic Crypto BustIn the latest press release, the RCMP said that the case was initiated in June 2024 after a Europol tip led the Money Laundering Investigative Team (MLIT) to probe the platform’s activities.Authorities discovered that TradeOgre violated Canadian financial laws, particularly for failing to register with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) as a money services business and for neglecting to verify its clients’ identities.Investigators believe the majority of funds passing through the platform were tied to criminal activity, and noted that privacy-driven exchanges are often used by organized crime groups to launder illicit money. Transaction data collected from the exchange will undergo further analysis, and officials have indicated that charges could follow as the investigation remains ongoing.“Straight Up Theft”?The seizure sparked heated reactions within the community, as many users expressed anger and concern about the fate of legitimate funds. Reuben Yap, co-founder of Firo (formerly ZCoin), questioned whether Canadian authorities intend to confiscate balances that originated from lawful sources. He argued that penalizing all account holders simply because the exchange did not enforce know-your-customer (KYC) procedures would amount to theft from innocent users.Yap further compared the situation to the notorious BTC-e case, where claimants faced a burdensome process requiring extensive evidence to recover funds, and warned that TradeOgre users may fare even worse since reports needed to support claims are no longer accessible.Other community voices echoed this outrage. For instance, prominent influencer CaptainCrypto called the move “fucking crazy” and stressed that users who engaged in no wrongdoing are now at risk of losing their assets. He argued that such blanket seizures undermine trust in the financial system and framed it as “straight up theft,” urging the broader crypto community to unite against what he views as an overreach of law enforcement authority.Meanwhile, MetaMask security lead Taylor Monahan tweeted,“Sorry to contradict your “beliefs” but last time I checked my friends and I are not criminals. Very much looking forward to seeing the evidence, and for you to provide recourse to ALL innocent parties you stole money from without notification and without due process.”The post $40M Seized, Trust Destroyed? Canada’s Largest Crypto Crackdown Leaves Users Furious appeared first on CryptoPotato.