ZachXBT rejects Canadian crypto-fraud cases, calls Toronto hub

On June 13, onchain investigator ZachXBT wrote on social media that he is declining all crypto-fraud requests from Canadian victims, arguing that law enforcement routinely fails to prosecute offenders or seize frozen assets, leaving victims without a path to recovery.

He pointed to two examples: a phishing campaign he wrote is now ransoming companies for millions, and an instance where similar onchain evidence led to prosecutions in other countries but drew no action in Canada.

ZachXBT has previously identified exchanges, law firms and payment routes he links to illicit funds, alleging an exchange withheld $13 million tied to theft, accusing a U.S. law firm of retaining $71 million connected to North Korea’s Lazarus Group, and publishing details of a crypto-to-fiat payment route linked to North Korea.

Canadian authorities cite recent enforcement actions in response to fraud. Toronto police announced arrests in an SMS-blaster fraud investigation, the Royal Canadian Mounted Police reported takedowns of large scam rings, and the Canadian Centre for Cyber Security flagged fraud and ransomware in its 2025–2026 threat assessment.

Lawyers and recovery specialists say blockchain tracing can map where stolen funds moved, but recovering assets requires rapid court orders, police action and international cooperation. Delays can allow criminals to move or convert proceeds into jurisdictions with weaker enforcement.

It remains unclear whether the investigator’s refusal to handle Canadian cases will prompt faster action by police or prosecutors. Victims in Canada who rely on onchain tracing may face limited options if authorities do not act quickly to freeze and repatriate stolen funds.