The Legal Side of Crypto Asset Recovery: What You Should Understand

Misplaced your crypto? Here is how legal assistance and the correct team could recover what is yours.

Did you know that over $2.2 billion was stolen in crypto-related scams in 2024? (Source) With digital theft on the rise, more people are looking for crypto asset recovery solutions than ever before.

But what does the law say about your stolen Bitcoin or Ethereum? What are your rights? And whom can you trust to help? In this blog, we will go through the legal aspects of reclaiming lost digital value and the steps you should take.

Understanding the Legal Side of Crypto Asset Recovery

The act of crypto asset recovery is defined as recovering stolen, lost, or inaccessible virtual currencies such as Bitcoin, Ethereum, or altcoins. Although some might argue that crypto is secure, thieves, hackers, and scammers still steal it on a daily basis. 

So, will the law assist you if your funds have been taken from you? Yes, but with conditions.

Here’s what you need to know, in legal terms:

• Crypto is legally considered to be property in most jurisdictions.
• Any theft or fraud as it pertains to crypto can, in some cases, be treated the same as a financial crime.
• Some laws, most notably in the US and UK, have recently been passed that support cases of crypto fraud and asset recovery.
• Authorities will have the power to freeze or seize digital assets as part of court-led proceedings.

Important Note: Always act fast. The longer you take to report your loss or problem, the lower your success.

How Legal Action Helps in Crypto Funds Recovery

Getting your crypto back isn’t as simple as filing a complaint. Legal crypto funds recovery involves layers:

Reporting Crypto Fraud to Law Enforcement

Begin by finding your local cybercrime unit and filing a complaint. Be sure to include: 

• Wallet addresses involved entrenched
• Screenshots or proof of transactions that happened between you and the scammer
• Your communication with the scammer
• Names of exchanges or IP information (if you have)

Tip: Use this to establish a legal trail and initiate recovery.

Hiring Legal or Crypto Recovery Experts

This is where crypto recovery experts come into play. They combine legal tools, blockchain analysis, and investigative skills. 

These teams can:

• Trace your crypto on the blockchain 
• Identify the owners of wallets or addresses 
• Engage with/exchanges or law enforcement 
• Initiate civil or criminal actions related to recovery 

However, it should be noted that not all companies are real; details on that are below.

Common Crypto Scams That Lead to Legal Action

Knowing the types of scams out there is useful to identify and address the scams earlier. The types of scams include:

Fake Investment Platforms

These sites will promise very high returns on your money and walk off with your money.

Romance or Impersonation Scams

Scammers will build your trust and then ask you for funds in crypto.

Phishing, Fake Wallets

You reveal your private keys to scammers by sending an email or using a fake app pretending to be a legitimate wallet. 

Table: Crypto Asset Recovery Services vs. DIY Recovery

Choosing the right method matters. Hiring trusted crypto asset recovery services boosts your chances greatly.

When to Seek Crypto Recovery Experts

You should consider seeking out an expert if you:

• Lost a lot of money
• The scam involves foreign wallets
• You don’t know who took your money
• You have already tried to recover it, but have failed

Good experts won’t promise miracles, but will have:

• A proven success record
• An understanding of legal and crypto tools
• Transparent communication and fees

Legal Red Flags to Watch in Recovery Services

Unfortunately, there are lots of scammers who pretend to be crypto asset recovery services. Avoid any service that:

• Asks for high upfront fees
• Offers a 100% recovered guarantee
• Does not send you a documented legal agreement or contract
• Asks for your private keys or to have access to your wallet

Pro Tip: Always check to see if other people have reported them on trusted scam-reporting websites. Definitely check the reviews until you feel comfortable paying them.

What the Law Is Doing to Help Victims

Authorities in the United States, Canada, and the UK are realizing that people are being scammed with crypto.

Here’s what is happening in the legal system:

• The UK courts allow for the freezing of crypto wallets in civil court cases.
• The US SEC and FBI actively pursue cases of fraud involving crypto.
• Interpol and Europol work cooperatively on international crypto crimes.

However, it is still often up to the victims to make the case for recovery with private investigations and legal assistance.

Take Action Now and Recover What’s Yours

Don’t leave your assets in the hands of scammers and possibly never see them again. The sooner you act, the greater your chances of recovering it. 

Work with trusted platforms like Report Scammed Funds, where trusted crypto asset recovery services and assistance are only a click away. We use real blockchain tracing, including legal support, and work with authorities to help you and others avoid becoming victims again. 

Recover your funds. Recover your power. Start your crypto recovery journey today!

FAQs

1. Can I recover lost crypto if I accidentally send it to the wrong address?

Sometimes, yes. If the wallet is on an exchange or has a known identity, you can contact support or pursue legal options.

2. Is it worth it to hire crypto recovery experts?

Yes, especially if the amount is significant. Experts possess knowledge of blockchain analysis and legal knowledge that you will probably not have.

3. What is the success rate for recovering crypto assets?

It depends on the circumstances. The potential to recover depends on the timeliness of your actions and the methods used to recover the crypto.

4. Can law enforcement help in pursuing a recovery of crypto?

Yes, if you file a complaint early and have substantial evidence. They may also lack the ability to trace assets at this point.

5. How do I prevent being defrauded in crypto again?

Trust in wallets and exchanges. You should ignore unsolicited investment offerings. Never share access to private keys or recovery phrases.