Canada’s Crypto Fraud Response Worse Than India or Nigeria, Says ZachXBT

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ZachXBT: Canada More Negligent On Crypto Fraud Than India or Nigeria

ZachXBT, a blockchain detective, announced he’s stopped helping Canadians who have been defrauded. He claims Canadian law enforcement is failing to adequately address these crimes and might even be less effective than authorities in countries like India or Nigeria.

  • Key Takeaways:

  • ZachXBT said on June 13 that he is declining all requests from Canadian fraud victims, citing weak enforcement and seizures.
  • He called Toronto a top 5 global cybercrime hub and Canada’s agencies possibly worse than India or Nigeria.
  • Without faster court action, ZachXBT argues, onchain evidence stalls, leaving Canadian victims little path to recovery.

Toronto Named a Top Cybercrime Hub

ZachXBT made the comments in a series of posts on June 13, arguing that Canadian authorities routinely fail to prosecute offenders or seize frozen assets for victims of fraud, and that domestic media avoid the subject, adding:

Canadian news outlets generally avoid reporting that Toronto has become a major center for cybercrime, ranking among the top five cities worldwide. Furthermore, authorities often don’t pursue cases or recover stolen money for fraud victims. This has forced me to stop taking on clients from Canada, as its government agencies appear to be less effective at addressing this issue than those in countries like India or Nigeria.

ZachXBT cited two prominent cases to support the claim. First, he said Canadian law enforcement ignored a report about a threat actor running phishing scams who now ransoms companies for millions of dollars. Second, he described an instance in which authorities did not act on evidence he provided, adding:

This is concerning because the proof I have for Exhibit 1 is the same kind of evidence that led to successful prosecutions of criminals in two other locations.

He didn’t identify who was behind the threats because investigations are still underway, but explained the problem isn’t a lack of proof – it’s that some governments don’t take action even when presented with solid evidence. Essentially, investigators can gather everything needed for prosecution, but certain countries simply don’t follow through.

A Pattern of Naming Negligent Gatekeepers

The remarks fit a wider campaign, given ZachXBT has built a reputation for pressing exchanges, law firms, and regulators he accuses of shielding or ignoring illicit funds. Just last month, Bitcoin.com News reported on his investigation accusing Kucoin of shielding $13 million in stolen crypto from German investigators, and on his exposure of a U.S. law firm’s $71 million grab of frozen funds tied to the North Korean Lazarus Group. He has also published leaked data on a North Korean payment pipeline that moved crypto into fiat currency.

His Canada comments add a jurisdictional angle to that body of work since, in crypto fraud, stolen funds move across borders in minutes, and victims depend on fast asset freezes and coordinated seizures to recover anything at all. When a jurisdiction is slow or unwilling to prosecute, ZachXBT argued, the onchain trail leads nowhere, even when it is crystal clear.

That said, Canada has logged a string of high-profile cybercrime cases recently, with the Toronto police recently announcing what they called unprecedented arrests in an SMS blaster fraud investigation, the first known use of the device-spoofing technology in the country. Similarly, the Royal Canadian Mounted Police (RCMP) has also touted takedowns of prolific scam operations with thousands of victims.

Expectantly, the Canadian Centre for Cyber Security’s National Cyber Threat Assessment for 2025-2026 has flagged fraud and ransomware as escalating threats to Canadians.

What the Standoff Signals

If a leading independent investigator is declining Canadian cases because he sees little chance of action, people defrauded there may have fewer avenues to recover funds (even when the blockchain evidence is unambiguous). Blockchain analysis can identify suspects and trace stolen money with unusual precision, but recovery still depends on courts, police, and asset-freezing powers in the offline world. Without that follow-through, even airtight evidence stalls.

It’s unclear if this public pressure will lead to action from Canadian authorities, but ZachXBT has successfully used similar methods – publicly identifying individuals and sharing evidence – to encourage exchanges and companies to take action in the past.

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2026-06-14 01:57