Cryptocurrency Fraud & Recovery

Following the money is only the first step.

Representation for cryptocurrency fraud and theft victims through the investigative and legal stages that can follow an on-chain trace.

Digital theft creates a chain of legal problems.

Many cryptocurrency fraud matters begin with a transfer the victim believed was legitimate. Others begin with compromised credentials, malware, a SIM swap, phishing, impersonation, a fraudulent investment platform, or unauthorized access to a custodial account.

The blockchain may preserve transaction evidence, but that alone does not identify a reachable defendant or lead to a recovery. Depending on the facts, a matter can require attribution work, exchange records, law-enforcement reporting, civil discovery, emergency relief, a settlement strategy, participation in a government recovery process, or analysis of the tax consequences of an unrecovered theft loss.

Whether recovery is realistic depends on where the funds went, whether they remain accessible, whether there are identifiable custodians or defendants, and on jurisdiction, evidentiary quality, and timing. The first step is a candid review of those facts: what can likely be proven, who can be reached, and what path, if any, offers a real chance of recovery. No responsible lawyer can promise a result before doing that.

One caution worth stating plainly. If someone has contacted you promising to recover your funds for an upfront fee, or guaranteeing a result, treat it as a likely second scam. Real recovery runs through investigation, exchanges, and courts or agencies, and a licensed law firm works through that process rather than selling a guarantee.

For immediate-response and evidentiary guidance, see what to do in the first 24 hours after a cryptocurrency scam, how pig-butchering scams move funds, and what a blockchain tracing report can and cannot prove.

Representative matters

  • Pig-butchering and investment scams
  • Phishing and social engineering
  • SIM-swap attacks
  • Account takeover and unauthorized transfers
  • Romance and impersonation scams
  • Wallet compromise and hacks
  • Fraudulent trading platforms

Tax Consequences of Crypto Theft

Digital-asset theft may create tax issues even when recovery remains uncertain.

Victims of cryptocurrency theft and investment fraud may have federal tax issues separate from the effort to recover their assets. In appropriate matters, the Firm evaluates the circumstances of the loss, the purpose for which the assets were held or transferred, and the status of potential recovery to help determine whether the loss may qualify for treatment under federal theft-loss rules.

The Firm can prepare legal and forensic substantiation for the client’s tax professional, including transaction evidence, the nature of the underlying theft, investment-purpose analysis, and the reasonable prospect of recovery. Tax-return preparation and final reporting decisions are handled by the client’s tax professional.