Cryptocurrency Fraud Investigations: How to Recover Stolen Assets
Introduction
As cryptocurrency adoption grows, so does the risk of falling victim to scams and fraud. Whether funds were lost through a phishing attack, fraudulent exchange, or malicious wallet software, a cryptocurrency fraud investigation can be the first step toward recovery.
TrueScope Consulting specializes in tracing stolen crypto assets, identifying bad actors, and supporting attorneys, victims, and law enforcement. Here’s what to know if you’re involved in a crypto fraud case.
What Is Cryptocurrency Fraud?
Crypto fraud involves deceptive tactics that trick victims into giving up their digital assets. Common schemes include:
- Ponzi investment scams: Promising high returns or exclusive ICOs, scammers use new investors’ funds to pay old ones.
- Rug pulls in DeFi/NFTs: Fraudsters hype a project, collect funds, then vanish with the liquidity.
- Impersonation scams: Criminals pose as exchange support, convincing users to share keys or send funds.
- Phishing attacks: Victims click malicious links that compromise their wallets or exchange accounts.
Fast action is key. The sooner an investigation starts, the higher the chances of tracing and recovering assets.
Can Cryptocurrency Be Traced?
Yes. Despite misconceptions, most cryptocurrency transactions occur on public blockchains. With the right tools and expertise, even complex trails can be traced. At TrueScope, we use advanced analytics to investigate through:
- Mixers/Tumblers: Designed to obscure crypto origins, yet imperfect usage allows forensic tools to identify links.
- Layered wallet transfers: Clustering algorithms reveal wallet networks likely controlled by the same user.
- Cross-chain conversions: We track fund movement between chains and monitor exchange activities.
- Off-chain clues: Communications on platforms like Telegram can support blockchain evidence.
By linking blockchain activity to KYC-compliant exchanges, we boost the odds of identifying fraudsters and recovering funds.
Learn more about our crypto tracing methodology.
Who Investigates Crypto Scams?
Crypto fraud investigators are trained in both forensic accounting and blockchain analysis. They may work in law enforcement, exchanges, or private firms like TrueScope. Our process includes:
- Tracing funds across wallets, blockchains, and exchanges.
- Identifying suspects via exchange data and clustering.
- Creating forensic reports for legal cases and law enforcement.
- Serving as expert witnesses in court, explaining crypto transactions clearly to judges and juries.
We often work alongside authorities, especially in high-value cases.
Explore our full forensic accounting services.
What To Do If You’re a Victim
Act quickly and follow these steps:
- Preserve evidence: Save TxIDs, communication screenshots, and scam site info.
- Hire a forensic expert: An expert can trace funds and assess recovery options.
- Notify platforms: Contact the exchange or service where funds were sent.
- Report to law enforcement: File a police report and provide forensic data.
- Pursue legal action: Use findings to support civil or criminal proceedings.
Read a case study on crypto fraud recovery.
Why Choose TrueScope Consulting?
We offer a comprehensive approach to crypto fraud investigations:
- Cross-chain tracing: We follow money across blockchains, mixers, and conversions.
- Legal-grade documentation: Our clear, detailed reports are built for litigation.
- Expert testimony: We help demystify crypto for judges, arbitrators, and juries.
- Collaboration with authorities: We present findings in law enforcement-friendly formats.
Our mission is to bring transparency and accountability to crypto cases.
Take the First Step Toward Recovery
If you’ve been scammed, you’re not alone—and you’re not powerless. The right investigation can uncover the truth and help pursue justice.
Contact TrueScope Consulting today for a confidential consultation. We’ll help you trace lost assets, collaborate with law enforcement, and seek justice.
