In recent years, I have written many times about the myriad of cryptocurrency scams that have cost people billions of dollars. According to the FBI, Americans lost more than 9.3 billion dollars to cryptocurrency investment scams in 2024. In some instances, law enforcement has been able to recover some of those lost funds, but in many other instances, the money is lost forever. According to the FBI, scammers, posing as representatives of companies that falsely claim to be able to recover funds lost to cryptocurrency scams, are luring in victims through social media, messaging platforms or advertisements. Often the scammers claim affiliation with law enforcement, federal agencies or legitimate legal services providers, but it is all a lie. In return for an up-front payment, the scammers claim they can recover all of the funds lost to a cryptocurrency scam. Of course, this is false and anyone who pays the fee loses that money.
Scammers also pose as law firms and contact victims of cryptocurrency scams offering their “assistance” in recovering their lost funds. The scammers also set up phony law firm websites to make themselves appear legitimate. In other instances the scammers use social media and messaging platforms to contact their targeted victims. Last year cryptocurrency scam victims lost more thatn 9.9 million dollars to fake lawyers offering their services to recover lost funds.
TIPS
No private company can issue a seizure order to a cryptocurrency exchange. This is only done by internal processes of the exchanges or in response to court ordered legal process as has been done by the Justice Department. If you are contacted by any of these companies, do not give personal information to them as this information can be used to make you a victim of identity theft.
Legitimate law enforcement agencies such as the FBI which works extensively in the area of cryptocurrency scams do not charge any fees for investigating cryptocurrency crimes or for efforts to return funds to people who have been scammed. If you are a victim of a cryptocurrency scam, you should contact the local office of the FBI for assistance.
As for law firms offering services to recover lost funds be wary if they request upfront payments or personal financial information.
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