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Crypto Scam Recovery Lawyers

The theft of cryptocurrency via scams is the digital asset industry’s largest problem.  Thirty-Four percent (34%) of all on-chain transaction volume is criminal.  Illicit addresses intake $24,200,000,000.00 in scammed crypto yearly.    Crypto scams stifle the adoption of cryptocurrency.  Crypto scams create mistrust.  Crypto scams increase governmental scrutiny.  They exacerbate the harshness of Web3 laws.  Hundreds of thousands of people are victimized by scams, yearly.  

For the majority, there is no means of recovering stolen, scammed crypto.  However, there is a means of recovering scammed crypto for the diligent few. 

How to determine:
IS IT A Crypto scam?

Crypto scammers are professional thieves.  They talk amongst themselves regarding techniques that work and those that fail.  Cyber criminals are rarely “lone wolves,” acting alone.  Rather, the normal situation involves a team of criminals, each with a specialty. 

Concerned potential victims should use diligence and involve others in their verification process.  Remember, cyber scammers heavily rely upon the willful blindness of their victims.  Cyber criminals offer benefits victims want to believe are true.  No one wants to believe they are being targeted to be a victim.  Seek the advice of someone competent.  Take their advice. 

  • Contacted out of the blue: Was the initial contact with the person spontaneous (unsolicited)?

  • Attractive Profile Photo: Is the profile picture a very physically attractive person? There is a reason it is called a "lure" or "bait."

  • Now, now now! Is there a sense of urgency in what they are asking?

  • It is a Sure Thing! Is the tone of request similar to “can’t miss” opportunities? 

  • Physical Business Location: Verify their physical office location.

  • Physical Home: Verify their physical residence.

  • Look up the Deed: Verify the ownership of any real estate (or home) they claim to own using its deed. Deeds to real estate are public records and can be verified in most jurisdictions. 

  • Fake contact information: Look deep into their email addresses.  Watch for fakes.  Show suspicion for non-corporate email addresses (yahoo, gmail, hotmail, etc).

  • Believe Us, Not Them! Have efforts been made to cast doubt on others to bolster their credibility? Like, "Watch out for ______. It could be a scam!"

  • A Stranger? Did you not know this person beforehand?

  • Acquaintences in common: Are there third parties, friends, acquaintances, colleagues you have in common?

  • IRL - Met in Real Life? Have you met them in person? 

  • But who knows you? Has anyone you know met them in person?

  • Be the Bouncer: Verify their identity with an in-person look at their identification.

  • Who Doesn't Have Two? Look for multiple types of identification, including insurance and credit cards.

  • Find a Business: Is this person associated with a business? Nearly all businesses must register and file reports with the government.  Many reports are public documents and can be used for verification. 

  • Zero Risk: Is the sales pitch that there is zero or near-zero risk? 

  • Do they Tout a "Learned Source?" Is the person citing as their source of wealth creation a Guru? Examples include Professors, Insiders, and Famous persons.

  • Illusion of Control Has it been stressed that risk is low because you remain in control? Has control been independently tested and verified? Is it merely the appearance of control?

  • Video them up: Have you had a spontaneous videoconference with this person?  (initiated by you)

  • Profesional Credentials: Verify any advertised license through direct contact with the licensing authority.

  • Verify their Tax Assessment: Is this person paying property tax? The payment of real estate taxes and personal property taxes is a public record that can be verified in many jurisdictions. 

  • Hire a Profesional: Consult professionals in the relevant field. A lawyer will see problems with faked legal documents.  An investment professional will see issues with a fake investment.  A banker will see suspicious activities in corrupt financial businesses. 

  • Extraordinary Returns: Are the promises of profits/Returns on investment well beyond what one would ordinarily expect from the market?

  • Unrealistic "Group" Is there a pool of "people" involved? Are the "people" always on message? Do the members never complain? Are there no Trolls?

  • Rejected Small Profit: Has the other person turned down small opportunities to profit, or steal from the victim? Such efforts are employed to bolster trust, a sense of security, and gain a larger payout later on.

What to Do
if you have been crypto scammed

It is no shame to admit one is the victim of a crypto scam.  Victims span the age, experience, education, and sophistication range.  Your delay will only aid the criminal.  Delay will potentially cost you more losses.  

There is much to do to battle the crime.  Here is your starting list:

Your To-Do List:

  1. Identify all wallets linked to the crypto scam or theft.
  2. Identify all applications linked to the scam or theft.
  3. Identify all applications and methods used to communicate with the crypto scammer (email addresses, D/M handles, telephone numbers, websites).
  4. Identify all third party vendors / businesses used.
  5. Contact your Bank if crypto custody has been tied to your bank account.
  6. Contact your Credit Card company if your crypto custody has been tied to a credit card.
  7. Change the passwords for your crypto programs and applications. This is especially important if you use the same password across multiple accounts. 
  8. Save all stored communications with the crypto scammer into a central file for later reference.
  9. Compile a list of the public and private keys to each and every token of crypto stolen. Save that list in a central file for later reference. 
  10. Identify and store the transaction hashes (addresses), the dates and times of the transactions, where your stolen crypto was sent. Preserve the amounts of cryptocurrency sent.  Preserve the type of cryptocurrency sent (BTC, ETH, USD, USDT, etc.)
  11. Save all photos or videos exchanged.
  12. Delete all applications linked to the scam or theft. Malicious code or applications may be in play.  If you intend to use the same applications for crypto in the future, delete the programs you have and later reinstall them from the source (assuming you have confirmed the source is trustworthy).
  13. A chronology of the dates of events. (What happened?  When did it happen?)
  14. Hire a forensic tracing service to track the movement of your stolen crypto and locate where it is presently.
  15. File a report with law enforcement. Contact the FBI’s Crime Complaint Center at ic3.gov  Some reference sources recommend filing an additional report with your State’s Attorney General or a local police department.  Filing reports is generally helpful only in situations where evidence support will be needed for court cases or if you have  insurance and will make a claim. 
  16. Do not respond if you are affirmatively contacted to recover your scammed or stolen crypto. This is especially true if an up front fee is required.  It could be a “recovery scam.”  Rely upon services and organizations you find yourself and not on services that contact you first. 

before the first meeting
what should I do to prepare?

  • Is the line of communication with the scammer still open? Is their account deleted? Is their social media profile still up? If you wanted to send them a message, could you?

  • Their Website Is their website still up and running? Take screenshots of each of its pages, if so.

  • Law Enforcement Reports: Do you have a copy of any reports that have been submitted to law enforcement? 

  • Your residence: You will need to share the location of your residence to determine the jurisdication of the legal fight.

  • Verify the amount of money you invested: How much did you onboard? This is not the amount to which your investmenet "grew," but rather the amount of your initial investment. Obtain verification of the amount.

  • Trace your stolen crypto: Where is your crypto now?

  • What path did your crypto take? Do you have a report detailing the path your crypto took to reach its present location?  

  • Photos, Videos, Audio: Take a screenshot and save any photos, videos, or audio of the scammers.

Learn More
from this article

The amount lost
matters

Extraordinary costs are involved in recovering stolen cryptocurrency.  The efforts require teams of investigators, forensic experts, and lawyers addressing different aspects of the process in different countries.  

The amounts of scammed crypto must be large to pay for the expensive recovery efforts.  No one likes the costs involved in the effort.  However, the costs are a necessity.  Expect to lose nearly half of the amount stolen in the process.  Expect for the minimum amount lost to exceed $200,000.00 USD.  

Time Matters
How Long has it Been?

The amount of time that has elapsed since your crypto was scammed or stolen is a significant issue but not a threshold issue.  The problems with delays in getting to crypto are several:

  1. The longer the time between the theft / scam and the recovery effort, the more opportunity for the crypto to pass through innocent hands.  
  2. The greater delay between the scam / steal and the recovery effort, the more complex and convoluted the path between you and where the crypto is presently stored.  
  3. Multiple Judges in different countries will need to be convinced to return your stolen / scammed crypto.  The longer the delay, the greater complexity of the fact pattern, the greater the likelihood that one Judge will disagree.  
  4. Witnesses forget, documents get lost, files get corrupted,  memories become foggy, emotions wane.  The longer the time between the scam and the recovery effort, the worse the evidence supporting the recovery.  

Location Matters
Where is the Crypto Now?

A third party forensic crypto expert will need to be hired to trace the path of the scammed crypto from the time it left your custody to the time is arrived in the control of the scammers.  

A crucial issue will be how the scammed crypto is being stored, and where.  This issue influences the team of experts, the team of lawyers, which courts will be making decisions, which Judges from those courts will be chosen, how the paperwork will be drafted, and the costs involved.  

The crypto scammers will have chosen a transaction path and how to store it.  The investigation will follow this path and find its destination.  

Why do cyber criminals prefer
Cryptocurrency scams?

  • Victim inexperience: Victims of crypto scams populate the range from the newest, youngest, and completely inexperienced to sophisticated, professionals.  Yet, most crypto scam victims lack the rare combination of crypto experience, scam experience, and the diligence it brings. 

  • Novelty: One advantage of the crypto industry is its promise of eliminating the need for legacy financial institutions, such as banks, credits unions, brokers, dealers, and clearing houses.  Eliminating intermediaries reduces cost and increases speed.  However, the benefits come at the cost of security.

  • Irrevocable: Crypto transactions are generally irrevocable.  Blockchain ledgers are chronological and decentralized.  There is no practical “undo” button once a mistake or crime is detected. 

  • Speed: Transaction speed reduces the “getaway” time for cyber criminals.  This speed increases a criminal’s chance of escape. 

  • Obfuscation: Transactions can be mixed, tumbled, pied away, and sent through a maze of interactions to hide the ultimate destination of the stolen crypto. 

  • Large Amounts of Money: Crypto scams frequently involve the entire life savings of individual victims and large accounts of business victims. They large potential theft amounts justify the large investments of time and resources by criminals.

  • Anonymity: Transactions on a blockchain are an open public record. However, crypto is particularly suited for cyber scammers who wish to hide their identity.

  • Law enforcement inexperience: Training takes time.  Thought and experience is needed to counter-act novel-new types of crime.  Law enforcement is not uniformly experienced in fighting cyber-crimes. 

  • Cross-Border movements: Crypto scams nearly always involve criminals acting from multiple remote countries.  Stopping these scams takes international cooperation and synergy that is unavailable in many areas (think Russia, North Korea). 

  • Intangible non-physical assets: Currency, precious metals, electronics, cosmetics, and vehicles are the most commonly stolen assets. All these items of value are bulky and heavy. Cryptocurrency is weightless, easing money laundering efforts.

For Crypto Scam victims, what is the typical age?

  • Less than Twenty years old, <20: 4.3%

  • Twenty to Twenty-nine years old, 20—29: 14.9%

  • Thirty to Thirty-nine years old, 30—39 21%

  • Forty to Forty-nine years old, 40—49: 20%

  • Fifty to Fifty-nine years old, 50—59: 15.7%

  • Older than Sixty years old, 60+: 24%

  • FBI, Cyber Division and Internet Crime Complaint Center

FBI, Cyber Division Crime Statistics

What are the Yearly Losses of Crypto Scam Victims in the U.S.A.?

The amounts lost in the United States on a yearly basis due to crypto scams are huge.  These losses are also growing by a staggering rate. 

  • Less than Twenty years old, <20: $40,700,000.00

  • Twenty to Twenty-nine years old, 20—29: $360,700,000.00

  • Twenty to Twenty-nine years old, 20—29: $360,700,000.00

  • Forty to Forty-nine years old, 40—49: $1,500,000,000.00

  • Fifty to Fifty-nine years old, 50—59: $1,700,000,000.00

  • Older than Sixty years old, 60+: $3,400,000,000.00

FBI, Internet Complaint Center

For Crypto Scammers, what apps do they comonly use?

  • Professional networking sites

  • LinkedIn

  • Facebook

  • Instagram

  • Telegram

  • WhatsApp

  • Dating Sites

  • Telephone/Text

Do you represent a crypto loss that qualifies for a recovery effort?

Contact us if you have been scammed out of more than $200,000.00

Your losses may be recoverable.  

Trial lawyer Matt Hamilton graduated from the University of Missouri in 1995 with Science degrees in Logistics, Marketing, and Business Administration.  Juris Doctor, 1999.

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