Crypto recovery scams

What a crypto recovery scam is

A crypto recovery scam is a second blow, aimed right at people who've already lost funds to a scam or a failed crypto service. You might see offers from so-called recovery agents, law firms or even forensic blockchain tracers promising to find, trace or get your funds back. Most demand money, or even cryptocurrency, from you up front, claiming it's needed to get started or to release the supposed recovered funds.

These operators often track down victims using databases of reported losses, unsolicited phone calls, or posts that look like helpful advice on forums and platforms. Sometimes they'll pose as a regulator, police unit or official government branch. Their sites can appear sophisticated, and you might even find staged testimonials if you look for feedback.

You're in a tough spot if you've lost money, and that's what makes you an easy target for these firms. For clarity: blockchain transactions are public, and a skilled investigator can sometimes tell where your crypto traveled. That doesn't mean they can recover it. Most people who are contacted lost money in a pig butchering scam or something similar at the start.

Red flags of a fake recovery firm

• They reach out before you looked for help, especially if you've just had a loss.
• They require you to pay up front, often in crypto, either to begin the process or to "release" your funds.
• They claim a guaranteed recovery or outcome.
• They ask for things no legitimate company should want: access to your crypto wallet, your passwords or your recovery seed phrase, which, if given, lets them control your wallet completely.
• They request that you install remote access tools on your computer.
• They're missing from any official register, and can't show you a license number you can actually look up.

Legitimate routes to recovery

There are no guarantees here. If you want to take steps that have a foundation, consider the following:

1. File a report with your local police and the national fraud reporting center in your country.
2. Contact your bank, payment service, or card provider. Ask if you can try a chargeback or file a claim under whatever consumer protection applies. Bring all evidence, such as a payslip if you were tricked through work or a sale contract if you paid for a product you never got.
3. Let your financial regulator know if an unauthorized or unlicensed firm was involved; this helps put them on official warning lists.
4. If legal action makes sense, pick a lawyer yourself, not one reaching out to you, and confirm they're registered with a bar association or legal regulator before handing over any money.

If you've just lost money and aren't sure where to start, see what to do if you have been scammed out of money. Be aware: crypto markets move quickly, and investments can also mean losses.

Frequently asked questions