(Please also read our Avoid Crypto Recovery Scams – Step-by-Step Guide.)
While we offer crypto tracing and investigation services for various reasons, from corporate M&A due diligence, internal fraud investigations, to finding hidden assets in a divorce, we are most often contacted to help recover stolen digital assets. So how does a legitimate crypto recovery service operate?
Please be aware that our services cater exclusively to corporations, law firms, family offices, and law enforcement agencies. Regrettably, we are not equipped to assist individual victims of cryptocurrency scams. If you’re an individual who has suffered from such a scam, we advise you to seek legal counsel prior to contacting us.
Recently, there has been a disturbing surge in fake crypto recovery services, often referred to as “crypto recovery scams.” These malicious operators prey on victims of cryptocurrency fraud, exploiting their desperation to recoup lost assets. They typically ask for up-front fees for a recovery service that, in reality, never materializes, effectively scamming victims twice over.
With this escalating problem, there’s an urgent need for awareness and education. Recognizing this, Crypto Investigators has taken a proactive step to safeguard potential victims. We have launched a series of informative blog posts aimed at equipping individuals with the knowledge they need to identify these crypto recovery scams. In these blog posts, we provide practical tips and insights on how to detect fraudulent services, distinguishing them from legitimate crypto recovery providers.
In this post we intent to provide a guide to understanding the workings of legitimate crypto recovery services, which operate within legal frameworks and employ transparent, ethical practices. Crypto Investigators and other legitimate crypto recovery services follow similar key steps described here.
Legitimate Crypto Recovery Step 1: Consultation
The process begins with an initial free, no-obligation, consultation with you, where we gather information about the incident. This includes understanding what happened, what assets were involved, which exchanges were used, the timing of transactions, and any other relevant details.
In this step please be prepared to share any communication you might have had with the scammers as well as any public wallet addresses involved in the scam. Please never share your private keys or seed phrases with us or any other service provider (See: Avoid Crypto Recovery Scams – Step-by-Step Guide).
At this stage we would also advise you on reporting the incident to your local law enforcement if you haven’t done it yet.
Legitimate Crypto Recovery Step 2: Preliminary Assessment
We then performs a preliminary assessment to determine whether recovery is feasible. This involves assessing the available information, looking at the amount lost, and considering the jurisdictions involved.
You should be aware that full recovery of all stolen crypto funds is very unlikely. In vast majority of cases we deem the recovery not possible. Even when we take on a case, it rarely results in partial recovery of stolen funds, let alone the whole amount.
Please keep in mind that the minimum crypto recovery fees are $20,000 payable upon successful recovery. We can offer tracing and investigation services alone at a lower price in case you can provide competent legal support for the legal phase of the recovery. See Crypto Recovery Pricing for more information.
Legitimate Crypto Recovery Step 3: Engagement Agreement
If we believe the recovery is possible, we will proceed with an engagement agreement. This outlines the scope of services, fee structures, and any necessary disclaimers or legal information.
Retainer fees might be required. Those, however, would be a small percentage of the estimated recovery fees. If we or our lawyers require it, we might also ask for the estimated fees or a portion of the fees to be placed in an escrow before the engagement. Escrow fees would be released to us only upon a successful recovery. If the recovery fails, the escrow fees would be returned to you.
Legitimate Crypto Recovery Step 4: Detailed Investigation, Blockchain Analysis, Blockchain Monitoring
The bulk of the recovery work lies in this step. We conduct a thorough investigation, which includes blockchain analysis—a method used to trace cryptocurrency transactions.
Blockchain analysis involves the examination of the public ledger (blockchain) where all transactions of a certain cryptocurrency are recorded. Tools are used to visualize transaction patterns and potentially identify the wallets where stolen funds have been moved.
Because the blockchain is a public ledger, all transactions are transparent and can be traced back to their origin. However, wallets can be anonymous, making it challenging to identify the actual recipient of the funds.
In order to successfully recover the funds, the funds need to be moved to a compliant exchange in a jurisdiction with a supportive legal framework. In certain cases, we might need to monitor the movement of funds for months or years before they reach a wallet that would give us a chance for successful recovery.
Legitimate Crypto Recovery Step 5: Legal Process – Freezing Assets
Upon identifying the wallets where the stolen funds reside, if these wallets are connected to a compliant exchange, we collaborate with legal counsel to take action. This often involves filing a legal injunction to freeze the assets.
It’s important to note that legal jurisdictions play a major role here. Not all jurisdictions have the necessary regulations in place to freeze crypto assets, and not all exchanges comply with these orders. During our tracing and monitoring phase, we keep you posted and advise you on when are the best chances for a successful recovery and when the legal process should be initiated.
Legitimate Crypto Recovery Step 6: Legal Process – Recovery of Assets
Once the assets are frozen, the legal process moves toward recovering the funds. This generally involves court proceedings where the claimant must substantiate their ownership of the stolen funds. This demands the presentation of comprehensive and compelling evidence that the stolen assets have been accurately traced to their current location, typically a cryptocurrency exchange. This task, quite intricate in its nature, underlines the necessity for highly proficient crypto investigators.
Such investigators need to be well-versed not only in the intricate technical aspects of crypto tracing, which involves understanding blockchain technologies and deploying advanced digital forensics, but also in the legal processes. It’s essential for them to navigate the complexities of the global legal landscape, understanding jurisdictional nuances, and coordinating with legal teams to prepare robust cases. More than just conducting investigations, they must also be competent in articulating their findings convincingly before a court. They need to be able to compile irrefutable evidence, and stand as expert witnesses in court, defending their findings robustly
This is where the unique blend of technical and legal proficiency that Crypto Investigators brings is pivotal. Our team of seasoned crypto investigators is distinguished by their deep understanding of both the technical and legal realms of the crypto space.
Legitimate Crypto Recovery Step 7: Return of Funds
One of the final stages in the process of cryptocurrency recovery is ensuring the stolen assets are safely returned to their rightful owner. This crucial step is only undertaken once directed by a court following a successful legal case. A legitimate crypto recovery service such as Crypto Investigators would assist in setting up robust, secure crypto custody solution for the client in preparation for the restitution. We would liaise with the exchanges involved and work with the client every step of the way to ensure that the restitution process is as smooth, seamless, safeguarded, and fully in compliance with the court’s directive.
Legitimate Crypto Recovery Step 8: Follow-up Services
At Crypto Investigators, we believe in delivering a comprehensive and future-oriented service to our clients. To this end, not only do we strive to recover your lost cryptocurrency, but we also extend our expertise to safeguard your recovered assets and prevent potential future losses. This follow-up service is delivered by our parent company, Cryptosec, which boasts an exemplary track record in crypto and blockchain cybersecurity. Our team of seasoned experts will guide you on the journey to enhanced crypto security and provide you with valuable insights to prevent the recurrence of scams or fraud.
In this security-focused follow-up service, we first lay emphasis on your education regarding the cryptocurrency landscape. We help you understand the best practices to follow, the pitfalls to avoid, and the signals that could indicate a potential scam. Our goal is to equip you with the knowledge you need to navigate the complex digital world confidently and securely.
Next, we offer hands-on assistance to set up secure wallets for your recovered digital assets. This involves the selection and setup of a crypto wallet and/or custody services that matches your needs, ensuring it is appropriately secured, and walking you through its operations. We don’t leave you to navigate these waters alone; our experts are there to guide you every step of the way.
Finally, we provide practical advice and actionable guidance for safer cryptocurrency usage. This covers everything from choosing the right exchanges and securely executing transactions, to staying updated on the latest security measures in the crypto world.
This follow-up service is highly recommended as an essential part of securing your digital future. With Cryptosec and Crypto Investigators at your service, you’re not just recovering your assets, but also fortifying your defenses against potential future attacks.
Engaging with legitimate crypto recovery services is your last hope when you find yourself victim to a scam, theft, or fraud in the digital assets domain. However, it’s essential to understand that legitimate crypto recovery is typically a long, intricate, and costly process that always involves complex legal processes and technical forensics / tracing efforts. The path to retrieving your lost digital assets involves meticulous crypto tracing, which is a highly technical and specialized process. It demands extensive blockchain knowledge, advanced forensic tools, and the ability to withstand scrutiny in a court of law.
Further, the legal complexities of crypto recovery are magnified by the fact that it frequently involves multiple jurisdictions, each with its own legal nuances and regulatory landscapes. This not only elongates the recovery process but also demands specialized legal expertise and international collaboration.
Moreover, any authentic crypto recovery service operates within legal and ethical boundaries. They never employ hackers to ‘hack back’ at scammers nor use ‘dark web’ tools or dubious methods to retrieve stolen assets. At the current state of technology, such recovery approaches are impossible, besides being unethical. It’s crucial to remember that while the aim is to recover your assets, this should never be pursued at the expense of legal compliance or ethical conduct.
Legitimate crypto recovery services also don’t promise a 100% success rate, as the nature of blockchain and the anonymity of transactions make such a guarantee unfeasible. In fact, any service that offers such a promise should be approached with extreme caution. If a deal sounds too good to be true, it likely is.
A legitimate crypto recovery service will walk you through the process, clearly communicating the complexity and timeline involved, and setting realistic expectations about possible outcomes. Their goal is to navigate the challenging digital landscape on your behalf, leveraging their expertise and network to give you the best chance at successful recovery. Remember, the pathway to legitimate crypto recovery is rarely easy, but the right partner can significantly ease the journey.
For more on how to detect crypto recovery scams see Avoid Crypto Recovery Scams – Step-by-Step Guide.