Three of the accused are enrolled as reservists in the 7th Toronto Regiment, a spokesperson for the Department of National Defence confirmed.James Maclennan/The Canadian Press
Toronto police have seized more than 2,500 rounds of ammunition allegedly stolen from the Canadian Armed Forces as part of an investigation into the July abduction of the owner of a cryptocurrency exchange that has led to the arrests of seven people, including three military members.
Toronto Police Chief Myron Demkiw said Wednesday that what started as a kidnapping investigation evolved into something “much larger” as the force uncovered firearms, ammunition and illicit drugs. Police say the abduction reflects an increasingly sophisticated brand of crime targeting digital assets.
“Criminals continue to adapt their methods and identify new opportunities for financial gain,” Joe Matthews, chief superintendent of detective operations with the Toronto Police Service, said during a press conference. “In this case, the victim was allegedly targeted because of his access to cryptocurrency assets.”
The Department of National Defence said it is investigating the matter and is working to improve oversight of ammunition holdings. “Canadians rightly expect the Canadian Armed Forces to manage ammunition and explosives safely, securely, and responsibly,” said spokesperson Andrée-Anne Poulin in an e-mailed statement.
“While the Canadian Armed Forces maintains extensive controls and oversight mechanisms for ammunition and explosives, we recognize the need to put more safeguards in place.”
Ms. Poulin did not respond to questions about how the alleged theft of military ammunition could have taken place, and when the CAF became aware of the issue.
Three of the accused – Talarambage Fernando, 22, James Moreau, 29, and Jack Miley, 24 – are enrolled as reservists in the 7th Toronto Regiment, Ms. Poulin confirmed Wednesday. She said they have been removed from military duties, and have had their access to facilities and equipment restricted since their arrests in August and September. “They remain members of the CAF pending the outcome of an administrative review,” she added.
The three men are facing charges of kidnapping for ransom and forcible confinement, as well as various gun-related offences. Mr. Moreau has also been charged with two counts of drug possession for trafficking.
The Toronto police investigation began after officers responded to a reported abduction in North York on July 25. They say the victim was targeted as he approached his vehicle, then abducted at gunpoint, handcuffed and assaulted. He was later released after being warned not to contact police, according to the force.
Chief Supt. Matthews said the victim suffered minor injuries, but has recovered. His identity has not been made public.
Two suspects were arrested on July 26, with an additional five arrests made in August and September. Search warrants executed during the investigation led to the seizure of a shotgun, two 3D-printed handguns, two silencers and a large quantity of illicit drugs, including methamphetamine and cocaine. Police also seized more than 2,700 rounds of ammunition, including live ammunition and blanks, the bulk of which had allegedly been stolen from the Canadian military.
“What started as an abduction investigation quickly unfolded into a much larger operation,” said Chief Supt. Matthews. He said the Canadian Armed Forces didn’t reveal whether they were already aware of the theft before it was reported to them by the Toronto police.
In total, the seven people accused of participating in the abduction are facing 82 charges related to kidnapping as well as firearm and drug offences.
Chief Supt. Matthews said police have not yet uncovered a connection to a larger organized crime group and are still trying to work out how the seven suspects knew each other, but said the investigation remains open. The alleged involvement of CAF members is worrisome, he said.
“Their training that they had received through the military is quite concerning, not only to the victims of this type of violence, but also to our officers who may encounter them,” he said. “These are highly trained individuals with access to firearms.”
This is not the first kidnapping incident involving cryptocurrencies in Toronto. In 2024, for example, The Globe and Mail confirmed that Dean Skurka, the chief executive officer of cryptocurrency company WonderFi Technologies Inc., was allegedly abducted and held for ransom.
Defence Minister David McGuinty did not immediately respond to a request for comment from The Globe.