Chainalysis Reactor Powers Canadian Police’s Fight Against Crypto Scams

Lethbridge Police Service (LPS) in Canada is making technological strides in their fight against cryptocurrency fraud. By leveraging Chainalysis Reactor, they aim to track cryptocurrency transactions and retrieve stolen funds. The software is capable of identifying and categorizing countless addresses, spanning both illicit and legal services. In the year 2022, investment fraud led to Canadians losing over $300 million.

The Economic Crimes Unit will entrust this task to a certified blockchain analysis investigator. The investigator will use Chainalysis Reactor software to methodically trace crypto transactions. Given the transparency of public blockchains like Ethereum or Bitcoin, it is possible to follow the path of the stolen tokens.

For effective investigations, the requisite data must be fed into the program. From here, the software traces the funds’ movement from the victims’ wallets to the respective exchanges. After pinpointing the involved exchange, law enforcement will secure judicial approval to access details such as account holder information, transaction histories, and outgoing transfers.

It’s essential to note that while bringing the perpetrators to justice is a crucial aspect, the primary objective remains to assist victims of crypto scams in recovering their funds. The police will employ blockchain analysis to monitor transactions and identify where stolen coins are stored.