She said she was then advised to withdraw money from her bank accounts and deposit it through a Bitcoin machine, where it would remain in an account for safekeeping until the investigation was over.

That poor woman. Even if she hadn’t seen all the other red flags, this was the flare gun shot in the night sky.

One of the most important things to remember about scams is that there's almost never an "act now" urgency with legitimate investigations/actions. Even in cases of crimes where people are arrested on the spot they have the right to talk to a lawyer before anything proceeds legally. The authorities are not contacting groups of citizens over the phone to tell them they'll be arrested/lose everything in 24 hours if they don't comply.

If someone is telling you that you need to do something IMMEDIATELY and you need reassurance, first off realize it's almost certainly a load of crap. Tell them to send their requests to you in writing, hang up, and contact your bank and/or the institutions that are apparently investigating you (CRA, Police, etc.)

Though she was convinced she was helping the Canadian government with its investigation, her husband and friends said something didn't seem right, adding she was likely getting scammed.

She was warned, and still went ahead with it anyway without doing the slightest bit of verification. This feels like the finance version of a Darwin Award

I feel bad for her, but it does sound like a fairly obvious scam.

I'm blown away that people still fall for these. Always say that you'll call back to verify and get the number from the company's website or call the number on your credit / debit card.