U.S., UK, and Canada Initiate Operation Atlantic to Combat Crypto Approval Phishing Schemes

International law enforcement initiative targets approval-phishing schemes linked to cryptocurrency investment fraud.

Agents from the U.S. Secret Service will oversee cryptocurrency fraud probes during an operation aimed at combating approval phishing scams. (U.S. Secret Service-Wikimedia Commons/Modified by CoinDesk)

Key details:

• Law enforcement organizations from the U.S., U.K., and Canada have launched Operation Atlantic to counter cryptocurrency fraud schemes termed approval-phishing attacks.
• These schemes deceive victims into permitting wallet access via fraudulent notifications or pop-ups, enabling perpetrators to take control of crypto wallets and transfer funds in irreversible blockchain transactions.
• Building on previous initiatives like Project Atlas and Operation Spincaster, officials indicate that this effort will emphasize real-time disruption of scams, alerting victims, and providing assistance on securing compromised wallets and recovering lost assets.

Law enforcement agencies in the U.S., U.K., and Canada have initiated a collaborative effort known as Operation Atlantic, which aims to impede cryptocurrency fraud schemes identified as approval-phishing attacks, as stated by the Ontario Securities Commission (OSC) on Monday.

The scams function by encouraging victims to approve harmful wallet permissions through deceptive notifications or pop-ups that seem to originate from reputable applications or services, according to the OSC. Once access is granted, criminals can take over the wallet and transfer assets. Since blockchain transactions are irreversible, recovery becomes challenging once the assets have exited the victim’s account.

Cryptocurrency scams produced at least $14 billion in onchain revenue in 2025, as reported by Chainalysis, with projections suggesting totals could rise to $17 billion as additional illicit wallets are uncovered. A significant portion of this activity now employs social engineering techniques, advanced AI-generated content, and phishing-as-a-service platforms to deceive victims into allowing wallet access or transferring funds.

“Approval phishing and investment scams result in millions of dollars in financial losses for victims annually,” remarked Brent Daniels, deputy assistant director for the U.S. Secret Service’s Office of Field Operations, which is participating in the initiative.

The operation builds upon Project Atlas, a 2024 initiative led by the Ontario Provincial Police’s Cyber-Enabled Fraud Team aimed at tackling global crypto investment fraud. This project identified over 2,000 compromised wallets across 14 nations, disrupted approximately $70 million in potential fraud, and froze around $24 million in stolen cryptocurrency. Other international efforts, such as Chainalysis’ Operation Spincaster, produced over 7,000 investigative leads linked to roughly $162 million in losses, underscoring the magnitude of approval phishing schemes targeting cryptocurrency investors.

Authorities indicated that the new operation will assist in warning potential victims and advising them on how to secure compromised wallets while also attempting to trace and reclaim stolen funds.

“During Operation Atlantic, the Secret Service, along with our global law enforcement partners, will seek to identify and disrupt these scams in near real-time, preventing criminals from further profiting from their illicit activities,” Daniels stated.