Canadian Regulators Warn of Crypto Scam Exploiting Trade War Fears
Canadian Regulators Warn of Crypto Scam Exploiting Trade War Fears
Crypto scammers are using fake news articles and impersonating government figures to exploit trade war anxieties, according to securities regulators in Alberta and New Brunswick.
The Alberta Securities Commission issued a warning on March 7 about a fraudulent crypto investment scheme called “CanCap,” which falsely claimed an endorsement from former Prime Minister Justin Trudeau. The scam used a fabricated CBC news article suggesting Trudeau supported a digital currency investment program in response to U.S. tariffs.
Similarly, the Financial and Consumer Services Commission of New Brunswick warned on March 5 that CanCap used another fake news article to suggest that Premier Susan Holt endorsed the platform. The fraudulent piece, designed to resemble a Telegraph-Journal article, included a fabricated CBC interview transcript and altered images of Holt promoting the scheme.
The scam emerged amid economic uncertainty caused by U.S. trade policies. Former President Donald Trump’s tariffs on Canada—initially set at 25% in February—were partially rolled back before he later threatened a 250% tariff on lumber and dairy. Mark Carney, who succeeded Trudeau as prime minister on March 9, condemned Trump’s actions, vowing that Canada would prevail in a trade war.
“With economic uncertainty, some individuals are seeking alternative income sources, making them vulnerable to scams,” said Marissa Sollows, communications director for New Brunswick’s financial watchdog. “Fraudsters are exploiting these fears, using AI-generated content and fake endorsements to appear credible.”
Regulators noted that crypto scammers frequently rebrand their schemes, with CanCap also operating under the names “CanCentra” and “Immediate Flectinium,” linked to at least six different websites.
Global losses from crypto scams, hacks, and exploits reached nearly $1.53 billion in February, largely driven by a $1.4 billion hack on the crypto exchange Bybit, according to cybersecurity firm CertiK. Even excluding the Bybit incident, February losses totaled over $126 million, marking a 28.5% increase from January’s $98 million.
