June 14, 2024

Brad Marolf

Business & Finance Wonders

3 Ways To Recover Funds From Cryptocurrency Scam

Cryptocurrency was created back in 2009 by Satoshi Nakamoto and has evolved into the most valuable and talked about currency exchange today with its big blow up in 2013 and 2017, to demonstrate the extent of the new heights, $1000 worth of bitcoin in 2010 would now be worth $35 million dollars.

This currency has brought a lot of attention to the world and everyone wants a piece of it therefore, broker scams are very common now. Although there is guidance, rules and strategies to avoid any kind of cryptocurrency scam, that doesn’t mean it can’t always be 100% avoided for everyone. If you have been a victim of an online trading scam, here are 3 crypto recovery suggestions.

Maintaining composure and seeing the light after falling victim to a crypto scam can be difficult. However, it is essential to keep calm and not to make any irrational decisions out of anger, frustration and panic. So take a deep breath, avoid impulsive actions and seek support through family members, or speak to other members of the crypto community to find a different perspective and valuable insights on how to begin the process of your crypto recovery.

1.   Document & Report

To effectively report a broker scam to the authorities documentation is imperative to increase the chances of a full recovery. Relevant information should be screenshotted in order to preserve all your digital evidence from all communications, transactions and any other evidence that could be relevant such as email headers, URL’s, IP addresses. Go a step further to present it to the authorities in chronological order.

Contact your local law enforcement, fill out a Federal Trade Commission fraud report or reach out to Cybercrime units. All of these services will provide you with the correct guidance and possess the expertise and resources to investigate, track down the scammers and recover your losses.

2.   Legal Action

There are a few lanes one can take advantage of after reporting the crime.

  • Sue the scammers: Although this does not guarantee full fund recovery, the government has the responsibility and resources to track down the criminals and retrieve the funds stolen from you.
  • Hiring a lawyer who specialises in crypto scams can increase your chances of getting a full recovery and hold the company or individual accountable.
  • Reach out to cryptocurrency exchanges, this not only protects others from the same fate but it increases the chances of recovery if all the steps above have been followed and follow-up is maintained through the investigation process.

3.   Alternative Approaches

While individual legal action can be a root for some people it’s not the only one you have to take, here are some alternatives:

  • Reaching out to a trusted recovery firm these firms take the information you give them and help in the retrieval of your lost or stolen crypto funds this can include recovery of access to your crypto assets.
  • A Class Action Lawsuit which merges cases with the same lawsuit claim, this can make it easier to hold the criminal accountable and seek justice.