Crypto recovery scams

What You Need to Know Before You Lose More

Cryptocurrency fraud victims are increasingly being targeted twice — first by the original scammer who steals their money, and then by fake “crypto recovery” companies that promise to get it back.

If you or someone you know has lost money in a crypto scam, it’s crucial to understand what’s realistic, what isn’t, and who you can trust. Here’s what reputable experts, detectives, and forensic investigators want every victim to know.

What Reputable Companies Can Do

• Tracing Funds: Legitimate, licensed blockchain forensic companies can trace stolen crypto across wallets and exchanges. They use specialized tools to follow the money trail on the blockchain. This can help victims and law enforcement understand where funds have moved.
• Reporting & Documentation: Good firms can prepare high-quality forensic reports. These can be useful when you file a police report or when law enforcement needs to work with a crypto exchange.
• Collaboration with Law Enforcement: In serious cases, some reputable investigative firms may have working relationships with crypto exchanges or regulators. They can sometimes help initiate a temporary hold on suspicious assets — but only if they’re also working with law enforcement.

But that’s where their power ends.

What Only Law Enforcement Can Do

• Freeze or Seize Assets: A private company cannot legally seize or permanently freeze crypto assets. Only law enforcement — acting under the authority of a court order — can formally compel a crypto exchange to hold or return stolen funds.
• Request Court Orders: Recovery depends on whether you file a proper police report. Without a legal investigation and valid court documents, no exchange is obligated to act.
• Coordinate Internationally: Many scams involve wallets overseas. Local police or federal agencies often need to work with international partners and INTERPOL to pursue these crimes.

The Red Flags of Fake “Crypto Recovery” Companies

Too many victims end up losing more money to scammers posing as helpers. Here’s what to watch for:

• “Guaranteed Recovery” Promises: No one can guarantee to recover crypto — ever. If they do, it’s a lie.
• Upfront or “Success” Fees: Fake recovery firms often ask you to pay thousands in “processing fees” or “transfer taxes.” Once you pay, you’ll be pressured for more.
• Fake “Wallet Freezes”: Scammers may claim they “froze” the scammer’s wallet. If there’s no police report or court order, nothing is frozen.
• No Real Credentials: Reputable firms have real licenses, forensic certifications, or a proven history of working with law enforcement. Many scammers create fake websites with “5-star reviews” that can’t be verified.

Beware of “The Second Scam” — Imposters Posing as Police

It’s common for victims to receive calls or emails from people pretending to be:

• Law enforcement detectives
• Government agents
• Licensed recovery specialists

They claim they’re investigating your case and need an “evidence fee” or a “good faith bond” to return your funds. This is a lie — real law enforcement will never ask you for money to recover stolen assets.

What Victims Should Do Instead

• Report the Original Scam: File a local police report — use your blockchain tracing report if you have one. In the U.S., also file at IC3.gov and ReportFraud.ftc.gov.
• Contact Your Crypto Exchange or Bank: Some exchanges may help freeze funds if they’re still on the exchange. They’ll need an official police report.
• Use Caution with Private Firms: If you do hire a private blockchain investigator, verify they’re licensed, have real credentials, and never pay large upfront fees without clear terms. A real forensic firm will explain exactly how they work with law enforcement — not promise a magic solution.
• Stay Vigilant: If anyone contacts you claiming they can “recover your money,” hang up and verify who they are. Never give your wallet seed phrases or personal passwords to anyone — not even to “recovery agents.”

Beware of Fictitious “Law Firms” and Imposter Attorneys

Scammers often pose as lawyers or claim to be “authorized partners” of government agencies to sell fake crypto-recovery services. These imposters exploit urgency, promise certainty, and try to move you into private channels where they control the narrative. Use the red-flag list and verification steps below before engaging anyone who claims they can recover funds.

Red Flags of Fictitious Law Firm Activity

• Impersonation of real lawyers/firms: Use of stolen letterhead, fabricated bar numbers, or spoofed emails that look like legitimate firms.
• False government affiliations: Claims of being “official partners” with U.S. or foreign agencies (there are no such authorized partner law firms).
• References to fake agencies: Mentions of non-existent regulators such as the “International Financial Trading Commission (INTFTC).” Always verify an agency exists.
• Payment in crypto or gift cards: Requests for cryptocurrency, prepaid cards, or other hard-to-reverse payments. U.S. government entities do not charge “recovery” or “investigation” fees.
• Suspicious insider knowledge: They cite exact amounts/dates of your previous transfers to appear credible.
• “Government victim list” claims: Saying you’re on an official list and they can return funds “through legal channels.”
• “Crypto recovery law firm” referral: Steering you to a supposed specialist that requires fees before any action.
• Foreign bank setup: Instructing you to register an account at a named foreign bank via a provided link—often a fraudulent platform designed to steal more money.
• Secrecy via group chats: Moving you to WhatsApp/Telegram “for your safety,” then demanding “bank fees” or “verification fees.”
• No verifiable identity: Refusal to appear on camera, provide clear license credentials, or meet by video.
• Third-party payees: Asking you to wire fees to unrelated companies “to maintain secrecy.”

Due Diligence Before You Engage Any Law Firm

• Adopt a Zero-Trust mindset: Verify every claim, document, and identity before sharing information or paying money.
• Be wary of unsolicited outreach: If they contacted you first and you never filed a report, assume risk until you verify independently.
• License & identity check: Ask for the attorney’s full name, bar number, and jurisdiction. Verify in the official state bar directory and confirm current, active status and any discipline.
• Face-to-face verification: Require a short video meeting. Ask them to display their ID and bar card on camera.
• Independent confirmation: Call the law firm using a phone number you find yourself on the firm’s official website (not one provided in a message). Confirm the person works there.
• Government identity checks: If someone claims to be with a government agency or law enforcement, call the local office directly to verify employment and case involvement.
• Paper trail: Keep screenshots, call logs, emails, and recordings of video meetings. Never share seed phrases or passwords.
• Engagement terms: Legitimate firms use written engagement letters with clear scope, fees, and deliverables—no vague “processing” charges or demands for crypto/gift cards.

How to Report Imposter Law Firms

• File with law enforcement: Report at IC3.gov and with your local police or FBI field office. Include any blockchain tracing/reporting you already have.
• Notify your state bar: Submit a complaint to the state bar where the attorney claims to be licensed. (Search “[Your State] bar attorney search” to find the official directory and complaint portal.)
• Alert consumer regulators: In the U.S., also report at ReportFraud.ftc.gov.

Takeaway: Clarity, Not False Hope

Recovering lost crypto is complex and difficult — but it’s possible in rare cases when victims have proper evidence and law enforcement support. Don’t let someone exploit you twice. Be cautious, get the facts, and trust only reputable, licensed professionals and official agencies.