ZachXBT Criticizes Canada’s Crypto Fraud Enforcement, Calls It More Negligent Than India or Nigeria
June 13, 2026 — By Shiraz Jagati
Onchain investigator ZachXBT has publicly condemned Canadian authorities for their inadequate response to cryptocurrency-related fraud, stating that the country’s law enforcement agencies are potentially "more negligent than either India or Nigeria." The hard-hitting remarks came as ZachXBT announced he will no longer accept any fraud victim cases from Canada due to what he describes as weak enforcement and a lack of effective asset seizures.
Canadian Authorities Facing Harsh Criticism
In a series of posts on June 13, ZachXBT accused Canadian law enforcement of routinely failing to prosecute cybercriminals or seize frozen assets on behalf of fraud victims. He also pointed out that mainstream Canadian media avoids reporting on these issues, despite evidence suggesting Toronto has grown into one of the world’s top hubs for cybercrime.
“Canadian mainstream media would not dare to report about how Toronto has grown into a top 5 hub globally for cybercriminals, and that law enforcement fails to prosecute or seize frozen assets for its victims of fraud. I had to start declining all victims from Canada. Its government agencies may be more negligent than either India or Nigeria,” he wrote.
Two Cases Highlight Enforcement Gaps
ZachXBT referenced two notable cases to illustrate systemic shortcomings:
- A report concerning a threat actor conducting phishing scams and subsequently extracting ransoms of millions from companies was allegedly ignored by Canadian law enforcement.
- An instance where authorities failed to act on court-ready evidence provided by ZachXBT himself.
He emphasized that the evidence he supplied was comparable to that which resulted in successful prosecutions in other countries, suggesting that Canadian inaction stems from a lack of will or capacity rather than lack of proof.
Patterns of Naming Negligent Gatekeepers
These criticisms align with ZachXBT’s broader efforts to spotlight negligence among exchanges, law firms, and regulators implicated in crypto crime. His recent investigations include claims that:
- KuCoin shielded $13 million in stolen cryptocurrency from German investigators.
- A U.S. law firm illegitimately claimed $71 million of frozen assets linked to North Korea’s Lazarus Group.
- He uncovered a payment pipeline facilitating North Korea’s conversion of cryptocurrency into fiat currency.
The new comments highlight a jurisdictional complexity in crypto fraud, where stolen funds cross borders rapidly and coordinated law enforcement action is critical for any hope of recovery.
Canadian Authorities Respond to Other Cybercrime Initiatives
Contrasted with ZachXBT’s critique is ongoing law enforcement activity in Canada addressing cybercrime. Toronto police recently announced unprecedented arrests in an SMS blaster fraud case involving device-spoofing technology, marking a first in the country. The Royal Canadian Mounted Police (RCMP) also reported multiple takedowns of extensive scam operations victimizing thousands.
Moreover, Canada’s National Cyber Threat Assessment for 2025-2026, published by the Canadian Centre for Cyber Security, flagged fraud and ransomware as escalating threats, acknowledging the growing challenges the nation faces in cyber defense.
What ZachXBT’s Standoff Means for Canadian Victims
ZachXBT’s decision to decline Canadian fraud cases signals a troubling bottleneck for victims seeking justice and restitution. While blockchain analytics enable investigators to track stolen funds with remarkable accuracy, successful recovery depends on active police engagement, court actions, and asset freezes in the real world.
Without timely court proceedings and enforcement, even crystal-clear digital evidence remains powerless, leaving victims with little recourse.
Will Public Pressure Spur Change?
ZachXBT’s tactic of publicly naming negligent parties and providing detailed evidence has previously motivated corrective actions from exchanges and law firms. Whether his latest critique will prompt Canadian authorities to accelerate their response to crypto fraud remains uncertain.
As cryptocurrency crime continues evolving at a rapid pace, the need for robust, cross-border enforcement and transparent media coverage becomes increasingly critical to protect investors and uphold justice.
Tags: Canada, ZachXBT, Cryptocurrency, Crypto Fraud, Cybercrime, Law Enforcement