Seven people, including three members of the Canadian Armed Forces, have been arrested in a Toronto kidnapping investigation involving an attempt to steal cryptocurrency, with police filing 82 criminal charges.
- Three Canadian Armed Forces members are among seven people arrested in a Toronto kidnapping investigation involving an attempt to steal cryptocurrency.
- Police have laid 82 criminal charges after suspects allegedly abducted and assaulted a man in July to gain access to his digital assets and business security systems.
- Investigators recovered approximately 2,500 rounds of stolen military ammunition, along with firearms, GPS tracking devices and illegal drugs.
- Canada’s Department of National Defence has launched a separate military police investigation and is reviewing its ammunition inventory controls.
According to a CTV News report citing Toronto police, the investigation began after a man was abducted on July 25 near Finch and Bayview avenues, where suspects allegedly assaulted him and tried to gain access to his digital assets and business security systems.
Police later recovered approximately 2,500 rounds of ammunition belonging to the Canadian Armed Forces, along with firearms, illegal drugs and tracking equipment.
The three military personnel were identified as Talarambage Fernando, James Moreau and Jack Miley. Investigators are examining their connections to the other four accused, although police have not established any links to an organized criminal gang.
Toronto crypto kidnapping began with violent abduction
Toronto Police Superintendent Joe Matthews said the victim was approaching his vehicle when the suspects confronted him, placed him in handcuffs and assaulted him.
During the abduction, the suspects demanded access to his cryptocurrency holdings and security systems connected to his business.
The victim was eventually released after being warned not to contact authorities. Police did not disclose the value of the cryptocurrency involved or confirm whether any digital assets were successfully transferred.
Investigators identified a vehicle believed to have been used in the crime within 24 hours and arrested two suspects.
Evidence gathered during the initial investigation led officers to pursue suspected firearms and drug offenses involving other individuals.
Police subsequently laid 82 charges across the seven accused, including kidnapping for ransom, forcible confinement, unauthorized firearm possession and possession of drugs for trafficking.
Military ammunition recovered during police searches
Search warrants executed during the investigation led officers to recover firearms, ammunition, drugs and equipment suspected of being connected to the criminal activity.
Among the seized items were a shotgun, firearms fitted with 3D printed receivers, GPS tracking devices, a crossbow and arrows, and Canadian currency.
Officers recovered substantial quantities of methamphetamine, cocaine and other controlled substances.
Investigators determined that roughly 2,500 rounds of ammunition had been stolen from the Canadian Armed Forces.
According to Matthews, the military had not previously reported the ammunition missing to police, but subsequently confirmed that the recovered rounds belonged to its inventory.
Two of the accused military personnel, Fernando, 22, and Moreau, 29, serve as bombardiers with the 7th Toronto Regiment, a reserve artillery unit within Canada’s 32 Canadian Brigade.
The regiment operates from Moss Park Armoury at 130 Queen Street East in Toronto.
The Department of National Defence confirmed earlier in October that both men had been removed from military duties following their arrests.
Investigators identified Miley as the third military member accused in the case but did not provide equivalent details about his assignment or rank.
Police raise concerns over cryptocurrency related violence
During Wednesday’s news conference, Matthews described the case as evidence of the “increasingly sophisticated and targeted nature of crimes involving digital assets.”
Police said the suspects had allegedly used physical violence and intimidation to obtain access to financial holdings, while the investigation subsequently uncovered weapons and controlled substances.
Matthews described the accused military members as “highly trained individuals with access to firearms.”
Toronto Police Chief Myron Demkiw expressed concern about the danger posed to the victim, the community and officers responding to the investigation.
Demkiw said the involvement of individuals with military training was particularly troubling given the alleged use of force to abduct someone.
Police are continuing to examine electronic devices seized during the investigation, including mobile phones and computers.
Demkiw acknowledged that encryption can complicate efforts to recover communications and determine how suspects planned or coordinated criminal activity.
Authorities said there were no outstanding suspects, although investigators have not completed their examination of the evidence.
Canadian military begins separate ammunition investigation
The Department of National Defence said military police were investigating the recovered ammunition and cooperating with the Toronto Police Service.
In a statement to CTV News Toronto, the department acknowledged the arrests and confirmed that the military ammunition recovered during the searches was being examined.
The department said it was strengthening ammunition inventory procedures, including verification of existing holdings and requirements for stock counts.
Military officials acknowledged the need for more safeguards despite existing rules governing the storage, handling and accounting of ammunition and explosives.
Under current procedures, military units must follow requirements covering the receipt, storage, use and return of ammunition, along with regular inspections and physical security checks.
The department said those standards apply to both regular and reserve forces.
A separate effort to modernize ammunition management is scheduled for the fall, with planned changes covering inventory accuracy, traceability and accountability across the Canadian Armed Forces.
Crypto kidnappings have continued across multiple countries
Violent crimes targeting cryptocurrency holders have been documented in several countries during 2026, with attackers using kidnapping, threats and physical assaults to demand access to digital assets.
In August, crypto.news covered findings from Chainalysis showing that criminals had stolen more than $30 million through physical attacks against cryptocurrency holders during the first half of the year.
The blockchain analytics firm documented 46 incidents, including kidnappings, home invasions and hostage situations. Only 12 resulted in payments, giving attackers a success rate of 26%.
Separate research published by CertiK in July identified 52 verified attacks worldwide during the same period, compared with 39 a year earlier.
CertiK calculated financial exposure of $124.1 million, although the figure included ransom demands, frozen assets and other amounts connected to the cases, not just money stolen.
France accounted for 33 incidents in CertiK’s dataset, while home invasions rose from one recorded case in the first half of 2025 to 20 in the first six months of 2026.
A separate kidnapping in northern France in September involved four masked men who held a family captive for more than three hours and forced the father, an IT worker in the cryptocurrency sector, to transfer €40,000 in digital assets.
The attackers assaulted the father while demanding access codes, and his 12 year old daughter was struck in the face. French authorities were investigating the incident as kidnapping and extortion by an organized gang, with the four suspects still at large when the case was reported.