Supporters of the crypto exchange TradeOgre have sharply criticized the Royal Canadian Mounted Police (RCMP) after the agency seized the platform and its assets, accusing authorities of punishing ordinary users for the misdeeds of a few bad actors.
On Thursday, the RCMP announced what it called “the largest cryptocurrency seizure in Canadian history,” confiscating more than 56 million Canadian dollars ($40.6 million) from TradeOgre, a centralized exchange long known for operating without Know Your Customer (KYC) requirements.
According to the RCMP, TradeOgre was unregistered with Canada’s financial intelligence watchdog and had been used for money laundering activities.
The seizure marks the first official update regarding the exchange, which has been offline and silent for months. The move has fueled renewed calls within the crypto community urging users to self-custody their assets rather than relying on centralized platforms.
RCMP officials described the operation as a milestone, noting it was “the first time a cryptocurrency exchange platform has been dismantled by Canadian law enforcement.” Investigators began probing TradeOgre in June 2024 following a tip from Europol, alleging the exchange operated as an unregistered money services business and failed to verify its customers.
“Investigators have reason to believe that the majority of funds transacted on TradeOgre originated from criminal activity,” the RCMP stated.
“The primary appeal of platforms that don’t require user identification is their ability to obscure the source of funds,” the agency added. “This is a common method employed by criminal organizations to launder money.”
However, many other exchanges—both centralized and especially decentralized—allow users to access some or all features without KYC verification, often implementing alternative measures, such as blockchain analytics, to prevent illicit activity.
The RCMP said its investigation is ongoing and that it is analyzing TradeOgre’s transaction data, which could lead to potential charges. The agency did not immediately respond to requests for comment outside of business hours.
Privacy isn’t a crime, crypto advocates say
TradeOgre gained popularity for listing niche, low-value, privacy-focused cryptocurrencies often excluded from larger exchanges.
Supporters of the platform criticized the RCMP’s seizure, arguing that many TradeOgre users were law-abiding and that using a non-KYC exchange is not illegal in Canada.
“Sorry to contradict your ‘beliefs,’ but last time I checked, my friends and I are not criminals,” said MetaMask security lead Taylor Monahan in response to the RCMP’s announcement.
“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.”
Reuben Yap, a former lawyer and co-founder of the privacy-focused cryptocurrency Firo, questioned how the RCMP intends to handle crypto that came from legitimate sources.
“Are you seriously saying you can confiscate everyone’s balances just because there was no KYC? That’s theft from many innocent users,” he said.
Earlier, The Rage reported a potential RCMP seizure of TradeOgre on Tuesday, after a Bitcoin transaction linked to the exchange contained the message: “Crypto assets controlled by the RCMP.”
Crypto users had been monitoring the exchange for any updates after its X account last posted in May, and the website was taken offline on July 30.
Recovering assets could be challenging and costly
While there may be a process for innocent TradeOgre users to reclaim funds seized by the RCMP, Firo co-founder Reuben Yap warned it is “likely to be a long and difficult process with many opportunities for mistakes.”
He pointed to the U.S. government’s 2017 seizure of the BTC-e exchange as an example of how “procedurally complex” such claims can be, with strict deadlines and minor errors potentially invalidating a claim.
Yap explained that the evidentiary burden to recover assets “was immense,” requiring affected users to provide extensive on-chain and off-chain documentation to prove ownership.
“There’s also the question of asset valuation,” he added, noting that governments generally value crypto at the time of seizure. If the assets increase in value afterward, “even successful claimants would only recover a fraction of the property’s subsequent worth,” Yap said.
