### Operation Spincaster: 2,000 Compromised Crypto Wallets Found

- The Australian Federal Police (AFP) have found that more than 2,000 crypto wallets belonging to local residents have been compromised by overseas fraudsters, putting millions of dollars in digital assets at risk.

- The discovery is the result of a global initiative against crypto fraud called Operation Spincaster, led by Chainalysis and coordinated by the AFP.

- The investigation, which began in June 2024, uncovered approximately $162 million in losses related to “approval phishing,” where victims sign fraudulent blockchain transactions.

- The operation also uncovered more than 7,000 potential leads, highlighting the global scale of the problem.

- Experts warn that phishing remains a significant threat in the crypto space, with losses of $314 million in the first half of this year alone.

- In a separate case, Australian prosecutors are seeking jail time for Crypto.com users implicated in the misappropriation of funds due to a platform error.