Crypto recovery scams
The second scam is aimed at people who have just lost money to the first.
A crypto recovery scam targets people who have already been scammed. Someone posing as a lawyer, a "blockchain investigator," a hacker or a government agency promises to get your lost crypto back, then charges upfront fees, taxes or "verification" payments. Nothing is ever recovered. Real law enforcement never charges a fee to investigate.
Legitimate support will never ask for your seed phrase (recovery phrase) or private key. Not an exchange, a wallet maker, a lawyer, the police or the FBI. Anyone who asks for it, or asks you to type it into a website, is trying to steal from you.
How big the problem is
The FBI's IC3 says it received 10,516 complaints about recovery scams in 2025, with reported losses of about $1.4 billion. In June 2024 it warned that victims re-targeted by fictitious law firms had reported more than $9.9 million in losses between February 2023 and February 2024, and it updated that warning in August 2025 because the schemes kept growing.
How it works, step by step
- They find you. Through a comment you posted about being scammed, a search ad for "recover stolen crypto," a fake review site, or a list of victims passed along by the original scammers. Sometimes it's the same gang.
- They sound official. Letterheads copied from real law firms, claims of partnership with the FBI, CFPB or a foreign government, or an invented regulator. The FBI's August 2025 alert names one, the "International Financial Trading Commission."
- They know details. They quote the exact amounts and dates of your losses, which makes them seem legitimate. Often it's because they, or their partners, took the money.
- They show "progress." A tracing report, a court document, or a login to a foreign bank portal showing your recovered balance.
- The fees start. A retainer, a "tax," a "gas fee," a "compliance deposit" or "bank fee to verify your identity," usually payable in crypto or gift cards. Each payment unlocks another fee.
- They vanish, or they ask for your seed phrase "to send the funds back," and empty whatever is left.
Warning signs
- Anyone who contacts you offering to recover crypto, especially if you never reported the loss to them.
- A guarantee of recovery, or a "success fee" that has to be paid upfront.
- Claims of working with, or being, the FBI, the FTC, the SEC, Interpol or a "crypto regulator." No law firm is an authorized partner of a US government agency.
- Payment requested in cryptocurrency, gift cards or wire to a third party "for secrecy."
- Refusal to meet on video or show a bar license you can check with the state bar.
- Being added to a WhatsApp or Telegram group of "other victims."
- Anyone asking for your seed phrase, remote access to your computer, or a "connect wallet" step.
How money really comes back, when it does
- Law enforcement seizures. When the government seizes and forfeits scam proceeds, victims can be compensated through a court process or the Justice Department's remission program. It is free, and they contact you; you can verify by calling your local FBI field office from a number you look up yourself.
- Freezes at exchanges and stablecoin issuers, which happen fastest when you report to ic3.gov right away.
- Bankruptcy claims for failed companies (for example FTX), handled through the court-appointed claims process, never through someone who cold-calls you.
- A licensed attorney you choose yourself, who will not promise results and whose license you can verify.
Blockchain analysis can show where funds went, but no private company can reverse a crypto transaction or force a scammer to pay.
If it happened to you
- Stop paying. No further fee will release anything. Stop replying, and don't hand over ID documents or account logins.
- If you shared a seed phrase or gave remote access, move what's left to a new wallet and have the computer checked.
- Write everything down before anything gets deleted: wallet addresses, transaction IDs (hashes), website addresses, usernames, phone numbers, screenshots of chats, dates and amounts.
- Report it to the FBI at ic3.gov and the FTC at reportfraud.ftc.gov. Reports are free. If funds land at a regulated exchange, law enforcement can sometimes freeze them, and speed matters. A local police report gives you a reference number for your bank or insurer.
- Contact the exchange you sent from, and the receiving exchange if the blockchain shows one, through its official website or app (never a number or link from a search ad or a stranger). Ask them to flag the addresses and the transactions.
- Expect a second scam. Victims are targeted again by fake "recovery" firms, fake lawyers and fake FBI agents. Real law enforcement never charges a fee. Read crypto recovery scams.
Need the steps in order? Use the emergency checklist for a compromised wallet or account.
Frequently asked questions
Can a crypto recovery service get my money back?
Services that contact you, promise recovery or charge upfront are scams. Legitimate recovery comes from law enforcement action, exchange freezes or court processes, and those don't charge victims.
Does the FBI charge a fee to recover stolen crypto?
No. The FBI states that law enforcement does not charge victims a fee for investigating crimes. A caller who asks for one is not the FBI.
Someone knows exactly how much I lost. Doesn't that prove they're real?
No. Scammers share and sell victim details. Knowing your losses is a reason for more suspicion, not less.
What about blockchain tracing companies?
Tracing can document where funds went, which helps a police report. It can't move the money back. Be wary of any firm that links tracing to a guaranteed recovery.
Where to next
Sources
- Fictitious law firms targeting cryptocurrency scam victims offering to recover funds (FBI PSA, June 24, 2024)
- Fictitious law firms targeting cryptocurrency scam victims, update (FBI PSA, August 13, 2025)
- FBI IC3 2025 Internet Crime Report (published April 2026)
- What to know about cryptocurrency and scams (FTC)
Written for beginners and checked against the sources listed. Last reviewed November 5, 2026. This page is educational and is not financial, tax or legal advice. How we write and check pages.