According to the Federal Bureau of Investigation (FBI), Americans have lost a record $9.3 billion as a result of cryptocurrency-related crimes in 2024, a 66% increase from the previous year.
These losses stemmed from investment scams, extortion, sextortion and fraudulent activity involving cryptocurrency ATMs and kiosks. According to https://www.thequantumcounsel.com/, many types of crypto scams have been executed over the past years, causing millions of victims to suffer tremendous losses.
One example is when a person is tricked into investing in a fraudulent platform or purchasing counterfeit digital assets. Mining scams are also common, in which scammers convince victims to invest in cryptocurrency mining operations that do not actually exist.
If you’ve been a victim of crypto fraud, don’t hesitate to seek legal advice. A lawyer can help you recover your losses. This article will go over the critical role that a lawyer plays in assisting their clients with crypto fraud or theft.
Understanding Crypto Fraud and Theft
Crypto fraud and theft pose threats to both investors and users. There are several types of scams that those who deal with cryptocurrency face. Ponzi schemes, phishing attempts, and fake initial coin offerings (ICOs) are all examples of scams that attempt to steal your digital assets.
Knowing these schemes helps you protect your investments. Criminals can use cryptocurrency to funnel away your hard-earned money. Scammers can create fake cryptocurrency exchanges or use social engineering tactics to trick people into revealing their wallet information.
Always verify the legitimacy of a cryptocurrency and identities before ever disclosing your personal information. Before sharing your personal information with any cryptocurrency project, platform, or team, always double-check their legitimacy. Conducting due diligence keeps you from falling prey to crypto fraud.
Assessing Your Legal Options
If you become a victim of a crypto scam, you must immediately consider legal options for recovering your losses and holding offenders accountable.
Consult a cryptocurrency lawyer who can inform you of the legal remedies available in your case.
Evaluate your options: pursuing civil litigation, filing a complaint with law enforcement, or seeking restitution through an administrative agency. Each of these approaches has different consequences and timelines.
Discuss with your lawyer what you hope to accomplish so that you can receive legal advice that is consistent with your specific set of goals. The sooner you take action, the more likely you are to recover your funds and see justice done.
Gathering Evidence and Documentation
If you fall victim to cryptocurrency fraud, evidence to substantiate your claim must be collected. Start off by gathering transaction records with the dates passed, amounts, and wallet addresses involved.
Take a screenshot of all communications, such as emails, social media messages, or messaging app chat dialogues. Thorough documentation will help establish the timeline and the context of your case.
If you trade on a platform, get whatever logs or reports you can. Don’t forget to record witness statements or conversations to support your claim.
Organized evidence will allow your attorney to thoroughly investigate the situation and present compelling arguments. Documentation will help you in receiving the maximum amount of compensation for your loss.
Filing Complaints and Legal Actions
Once the investigation is complete, you can move forward with other remedies such as filing complaints and lawsuits.
Report the fraud to the appropriate authorities, such as the Federal Trade Commission or the Securities and Exchange Commission. Your attorney will meticulously draft the complaint so that everything is covered.
Try to report the crypto fraud to your local law enforcement agency. They might investigate further or assist in connecting you to federal resources.
Your lawyer could suggest filing a civil lawsuit against the perpetrator. They will walk you through the procedure, explain your rights, and notify you of any potential penalties.
Following these steps is necessary for seeking justice and accountability.
Recovering Lost Funds and Damages
Recovering lost funds and damages after a cryptocurrency theft can be stressful, but with the right legal support, it can be made easier.
Investing in a skilled legal practitioner provides you with access to someone who can advise you on civil law options for recovering your assets or negotiating with the offending parties.
Your attorney may be able to identify additional potential insurance claims or restitution programs, giving you more options for recovering your assets.
Your lawyer will work tirelessly to have the emotional distress and financial loss caused by the cryptocurrency fraud recognized and pursued.
Having a lawyer on your side can increase your chances of recovering cryptocurrency assets.
