Crypto recovery scams: how they work and how to avoid them

Recovery scammers pose as hackers, blockchain investigators, law firms or even police. They promise to trace your stolen crypto and return it, then charge fees: an upfront retainer, a "tax" or "release fee" before the funds can be sent, then another fee after that. The money never comes back, and the fees are lost too.

No one can reverse a confirmed blockchain transaction. Legitimate tracing firms can follow where funds went, but they don't guarantee recovery, and they can't hack a wallet to take funds back.

• Replies under posts where people describe being scammed, often from accounts praising a "recovery hacker".
• Fake reviews and articles recommending a recovery service.
• Messages on Telegram, Instagram or WhatsApp soon after you report a scam publicly.
• Calls or emails from someone claiming to be a lawyer, regulator or police officer working on your case. Victim lists from earlier scams are sold and reused.

• Any fee before you receive anything, especially in crypto.
• A guarantee that your funds will be returned.
• A request for your seed phrase, private key, or remote access to your computer.
• A "trace report" showing your funds were found, followed by a payment needed to release them.
• Pressure to act quickly or keep it confidential.

• If your crypto went to an address at an exchange, contact that exchange right away with the transaction details: it can sometimes freeze the receiving account.
• Report the loss to the police. In the US, the FBI takes reports at ic3.gov.
• Keep everything: transaction IDs, wallet addresses, usernames and screenshots of the chats.
• Real police and regulators don't charge to investigate, and they don't contact you through social media DMs.

Search the recovery service's wallet address, website, email or username here before you send anything. Many are already reported, often by people they took money from twice. If one contacts you, report it so others recognise it.