Canadian regulators warn of a crypto scam exploiting trade war concerns to deceive victims

A cryptocurrency scam falsely claimed endorsement from Justin Trudeau, with the fraudulent then-prime minister urging viewers to use a bogus platform as a response to Donald Trump’s tariffs.

Canadian securities regulators in Alberta and New Brunswick have warned that crypto scammers are exploiting trade war anxieties by using fake news articles and impersonating government officials.

In a March 7 alert, the Alberta Securities Commission highlighted a fraudulent crypto investment scheme called CanCap, which falsely claimed endorsement from then-Prime Minister Justin Trudeau. The scam circulated a fabricated news article mimicking Canada’s national public broadcaster, the CBC, falsely stating that Trudeau was promoting a digital currency investment program in response to US tariffs.

Source: Alberta Securities Commission

On March 5, the Financial and Consumer Services Commission of New Brunswick also cautioned that CanCap had used a fabricated news article falsely claiming Premier Susan Holt endorsed the platform.

Designed to resemble a Telegraph-Journal web article, the fake report alleged that Holt supported the so-called “provincial investment program” in response to US tariff increases. The commission noted that the article included a fabricated transcript of an interview Holt supposedly gave to the CBC, along with doctored images of her allegedly launching the platform.

Canadian regulators warn that scammers are exploiting economic uncertainty caused by US President Donald Trump’s shifting tariff policies. After imposing 25% tariffs on Canada in February, Trump partially rolled them back before quickly threatening a 250% tariff on lumber and dairy.

Following Mark Carney’s appointment as Canada’s prime minister on March 9, he criticized Trump for “attacking Canadian families” and vowed that Canada “will win” any trade war.

Marissa Sollows, communications director for New Brunswick’s financial watchdog, noted that economic instability has left some Canadians anxious about their financial security, making them more vulnerable to scams. Fraudsters are seizing this opportunity, using AI-generated content and fake endorsements to add credibility to their schemes.

Both the Alberta and New Brunswick regulators highlighted how scammers adapt quickly, changing the names and appearances of their fraudulent operations. The scheme has already been linked to multiple domain names under aliases such as “CanCentra” and “Immediate Flectinium.”

According to blockchain security firm CertiK, global losses from crypto scams, hacks, and exploits reached nearly $1.53 billion in February—primarily due to a massive $1.4 billion hack on crypto exchange Bybit. Even excluding that incident, crypto-related losses still rose 28.5% from January, totaling over $126 million.