By Josephine Inika in Cryptocurrency — Mar 19, 2025

Can You Recover Stolen Crypto from Scammers? Here’s What to Know

Lost crypto to a scam? Learn if and how you can recover stolen funds, the steps to take, and how to avoid falling victim again.

Can You Recover Stolen Crypto from Scammers?

If you’ve lost crypto to a scam, you’re likely wondering if recovery is possible.

While it’s challenging, there are steps you can take to improve your chances.

Here’s what you need to know about recovering stolen crypto and protecting yourself in the future.

What You Can Recover (Sometimes) from Crypto Scams

1. Funds on Centralized Exchanges (If They Act Fast)

What it means: When a scam occurs through a centralized exchange (CEX) like Binance, Coinbase, or Obiex, there’s a better chance of recovering funds, especially if they are frozen or flagged before they’re withdrawn. Centralized exchanges have customer service teams, fraud detection, and other tools that allow them to intervene in certain cases.
Why it’s possible: These platforms keep a record of user transactions, wallet addresses, and IP addresses, so if you notice a transaction and act quickly, the exchange might be able to trace and freeze your funds.
How to act fast: If you discover that your funds have been stolen on a CEX, immediately contact the exchange’s support team, providing all necessary details (transaction ID, scammer’s wallet address, etc.). The faster you reach out, the better your chances of stopping the withdrawal.
Challenges: Even with CEX involvement, the chances of recovering funds still depend on the timing. Once the funds are moved off the platform (to another wallet, for example), they’re much harder to track.

2. Crypto Sent to Identifiable Scammer Wallets (Rare, But Possible)

What it means: If the scammer’s wallet address is known and can be identified, there’s a chance that the stolen funds could be traced back to the scammer. This is especially true if the scammer’s wallet interacts with exchanges or known services with KYC (Know Your Customer) processes.
Why it’s possible: Some blockchain analysis platforms, such as Chainalysis, can track transactions on the blockchain and flag certain wallet addresses as associated with illicit activities.
How to act fast: Report the scammer’s wallet address to the appropriate authorities (local police, financial regulators) and provide any proof you have of the scam. Authorities may work with exchanges and blockchain forensic companies to track the funds.
Challenges: Even with identifiable scammer wallets, funds often get moved across multiple wallets or use privacy techniques that make tracking difficult. If the scammer uses a service that obfuscates the transaction (like a mixing service), recovery becomes near impossible.

3. The Identity of the Scammer (If Reported and Authorities Get Involved)

What it means: In some cases, especially if the scam is large or high-profile, law enforcement agencies or cybersecurity firms may be able to track down the scammer’s identity. This usually happens if the scam involves large sums of money or the scammer’s identity can be linked to known digital footprints (e.g., IP addresses, emails).
Why it’s possible: If the scammer has made a mistake (e.g., used their personal email or failed to mask their IP address), authorities can potentially uncover their real-world identity. Additionally, some scams involve identifiable communications or interactions with victims that law enforcement can trace.
How to act fast: Report the scam to local authorities and any relevant online fraud bureaus (like the FBI’s Internet Crime Complaint Center or the Nigerian Economic and Financial Crimes Commission). In the case of cross-border scams, international cooperation between authorities is sometimes possible.
Challenges: Many scammers use VPNs or Tor to hide their location and identity, making it difficult for authorities to track them down. Moreover, in many cases, the amount of money involved may not be enough for authorities to prioritize the case.

What You Can’t Recover (Most of the Time) From Crypto Scams

1. Crypto Lost to Direct Peer-to-Peer Transactions

What it means: Peer-to-peer (P2P) transactions occur when you directly send funds to another person without the involvement of an intermediary (e.g., an exchange or a trusted platform).
Why it’s hard to recover: P2P transactions are decentralized and, once confirmed on the blockchain, are irreversible. Unlike centralized exchanges, there’s no entity that can freeze or reverse the transaction. If the person you sent funds to disappears or is a scammer, there’s little recourse.
How to act quickly: In rare cases, if you used a P2P platform with a reputation system, you may be able to escalate the issue to the platform’s dispute resolution team. However, even in these cases, the chances of recovery are slim.

2. Crypto Lost to Smart Contract Exploits and Hacks

What it means: A smart contract exploit happens when a vulnerability in a smart contract is used to steal funds. This is common in DeFi protocols, where poorly coded smart contracts can be targeted by malicious actors to drain liquidity or steal tokens.
Why it’s hard to recover: Once funds are drained from a smart contract, the decentralized nature of these contracts means there’s no central authority to turn to for recovery. Additionally, smart contracts are typically immutable, meaning the code cannot be altered after deployment, making it impossible to reverse transactions.
How to act quickly: If you notice an exploit, you can report it to the platform or protocol’s development team. In some cases, the platform may be able to freeze the affected contract or introduce a patch. However, if the exploit has already occurred, recovery is unlikely.

3. Crypto Sent to Privacy Wallets or Mixers

What it means: Privacy wallets or mixers obfuscate transaction details by mixing the funds with those of other users, making it impossible to track the original source of the crypto. Once funds are sent through these services, they are essentially “laundered” and cannot be traced back to their original source.

In the context of crypto mixers and privacy wallets, "obfuscate" refers to the process of obscuring or hiding the transaction details to make it harder to trace the flow of funds. This makes it difficult for third parties (such as regulators, hackers, or tracking services) to link specific transactions or addresses to an individual or entity.

Crypto Mixers: These services take cryptocurrency from many users, mix them together, and then send them back to the users in different amounts, often to new addresses. This process helps obfuscate the original source of the funds and break any links between the sender and the receiver.

Privacy Wallets: These wallets incorporate features like coin mixing, stealth addresses, or ring signatures to obfuscate the transaction history. These techniques mask the identity of the sender and receiver and hide transaction amounts, making it more difficult to trace the funds' origin or destination.

Why it’s hard to recover: Since privacy-focused services aim to provide anonymity, any transaction sent through them is virtually untraceable. This means that even if the scammer’s wallet is known, tracking the stolen funds through mixers or privacy wallets is almost impossible.
How to act quickly: Unfortunately, once funds are sent through a privacy service, recovery becomes nearly impossible. There’s little that law enforcement or exchanges can do, as the transaction has been deliberately hidden from view.

How to recover stolen cryptocurrency? Key Factors to Consider

Recovering stolen crypto depends on several factors, including the type of scam, the cryptocurrency involved, and the evidence you’ve gathered.

Here are key factors to consider when assessing whether you can get your stolen crypto back:

1. The type of Scam:

Crypto scams vary widely, from phishing attacks and fake exchanges to Ponzi schemes and fraudulent ICOs. The recovery approach will differ based on the scam’s nature.

2. What type of cryptocurrency was stolen?

Some cryptocurrencies, like Bitcoin, are more traceable due to their transparent blockchain. Others, like privacy coins (e.g., Monero), are harder to track. Understanding the crypto involved can help determine the likelihood of recovery.

3. How big was the Scam?

Is it an isolated incident that happened to only you or a large-scale operation affecting many victims like the $1.46 billion Bybit hack by the Lazarus group? Larger scams may attract more attention from authorities, but they can also be more complex to resolve.

4. What Evidence and Documentation do you have?

Strong evidence is critical for recovery. This includes transaction records, communication logs, screenshots, and other proof linking the scammer to the theft.

5. What are the laws where you are based and where the scam came from?

Crypto scams often cross borders, making jurisdiction a key factor. Identifying where the scam operates can help you find and contact the right authorities and legal experts.

Step-by-Step Guide: What to Do if Your Crypto Is Stolen

1. Stay Calm but Act Quickly

Discovering you’ve been scammed can be overwhelming, but staying calm reduces your chances of further loss or harm to yourself. Take a moment to collect your thoughts so you can approach the situation logically. Reach out to trusted friends, family, or crypto community groups for support and advice.

2. Document Everything

Gathering evidence is key to reporting the scam and potentially recovering your funds. Here’s how to document the incident:

Capture screenshots: Save all communications, transaction details, and any other proof of the scam.
Use blockchain explorers: Tools like Etherscan or Blockchain.com can help you track the movement of your stolen crypto. Set up alerts for transactions involving the scammer’s wallet address.
Preserve digital evidence: Save email headers, IP addresses, and website URLs linked to the scam.
Create a timeline: Write down a detailed account of events, including dates, times, and descriptions of interactions with the scammer.

3. Report the Scam to Authorities

Reporting the incident increases the chances of recovery and helps prevent others from falling victim. Here’s where to report:

Your crypto exchange: Determine which exchange was involved, whether it’s the platform you used or the one linked to the scammer’s wallet. Once you know at least one exchange involved, contact their support team immediately. Provide all the evidence and clearly explain what happened.
Local law enforcement: File a report with your local police and provide all documented evidence.
Financial regulators: Contact financial regulatory bodies in your jurisdiction for guidance.
Cybercrime units: Contact specialised agencies that handle online scams and crypto-related crimes.
Alert the crypto community: Share your experience (without revealing sensitive details) to warn others.

Extra Note: If you used a specific exchange to fund your crypto account and send money to a scammer, immediately report the incident to the exchange.

Inform them that the recipient is a scammer, and provide all relevant details. This serves two key purposes:

Account Security: The exchange can enhance your account’s security to prevent further unauthorised activity.
Recovery Efforts: While recovery isn’t guaranteed, the exchange may investigate the scammer’s activity, identify patterns, and potentially trace the stolen funds.
Reporting the scam helps protect other users: By flagging the scammer’s wallet address, the exchange can take steps to block or monitor suspicious activity, making it harder for cybercriminals to target others.

💡Pro Tip: Stay in touch with the exchange throughout their investigation. Respond promptly to any requests for additional information to help speed up the process.

4. Use Blockchain Analysis Tools

Blockchain’s transparency allows for tracking stolen funds. Specialised firms can help trace and potentially recover your crypto.

Companies like Elliptic and Chainalysis use forensic tools to trace stolen assets. If successful, they can work with exchanges to freeze the funds.

On your end, you can also continue using blockchain explorers to track the movement of your stolen crypto.

How Do You Recover a Stolen Bitcoin Lost to an Investment?

If your Bitcoin was lost due to a fraudulent investment (e.g., a Ponzi scheme or fake ICO), here's what you can do:

Report to Authorities: File a complaint with law enforcement agencies and financial regulators. In cases involving significant amounts, international authorities may get involved.
Try to Identify the Scammer: If the scam was done through an identifiable platform, gather all relevant information (email addresses, wallet IDs, screenshots) to trace the perpetrator.
Contact Legal and Recovery Firms: In some cases, you can reach out to legal firms or recovery specialists to explore potential legal actions or blockchain forensic analysis.
Accept the Loss, but Learn from It: Unfortunately, many scams leave little to no recourse for recovery. It's important to take the lessons learned to safeguard your future investments.

Legal Action: Can You Sue Crypto Scammers?

While recovering stolen crypto is challenging, taking legal action can be a helpful option. Here’s what you need to know:

1. Report the Scam to Authorities

Reporting the scam to law enforcement is a critical first step. While it doesn’t guarantee recovery, authorities can investigate and potentially track down the scammers.

Report crypto scams to agencies like your country's Securities and Exchange Commission (SEC). You can also check with your local government or financial regulators to find out where to report crypto-related fraud.

2. Hire a Cryptocurrency or Financial Scams Lawyer (if you can afford one)

A lawyer specialising in financial scams can help you:

File complaints with the appropriate authorities.
Pursue legal action against the scammers.
Handle complex legal processes to recover your funds.

For example, in 2021, the U.S. SEC shut down BitConnect, a crypto investment platform operating a Ponzi scheme. Investors who lost money could have worked with a lawyer to recover their funds and hold the company accountable.

💡While legal action doesn’t always guarantee recovery, it can be a helpful step in holding scammers accountable and potentially reclaiming your assets.

To Recap

Here are the steps to recover your stolen cryptocurrency:

Report to the Exchange or Platform: If the scam occurred through a centralized exchange (CEX), contact their support team immediately. Provide transaction IDs, wallet addresses, and any other details you have.
Notify Authorities: Report the theft to local law enforcement and relevant cybercrime authorities like the FBI's IC3 or the Nigerian Economic and Financial Crimes Commission (EFCC).
Use Blockchain Forensics: In some cases, blockchain analysis tools like Chainalysis or CipherTrace can trace stolen funds to an identifiable wallet. You may need to hire a professional service for this.
Avoid Fake Recovery Services: Be wary of crypto recovery scams. If a service claims to recover stolen crypto for a fee, it’s often a scam. Always do thorough research before engaging.

FAQs

General Crypto Recovery FAQs

Q: Can I recover stolen crypto?

A: Recovery is difficult but possible. Your chances depend on the type of scam, how traceable the stolen funds are, and how quickly you act.

Q: How to recover stolen crypto funds?

A: Follow these steps:

Gather evidence – Save transaction IDs, chats, emails, and any proof of the scam.
Track the funds – Use blockchain explorers (e.g., Etherscan for Ethereum, Blockchain.com for Bitcoin).
Report the scam – Contact exchanges, law enforcement, and financial regulators.
Hire blockchain forensic experts – Companies like Chainalysis can help trace stolen funds.

Q: Is it possible to recover stolen Bitcoin?

A: Yes, Bitcoin transactions are public and traceable. However, recovery is unlikely if the stolen BTC has been mixed or converted to privacy coins like Monero.

Q: Can you recover stolen cryptocurrency?

A: Yes, in some cases, authorities, exchanges, or blockchain tracking firms can trace and freeze the funds. And only if the funds are still traceable and haven’t been laundered or sent through mixers.

Q: How do I recover stolen crypto?

A: Act fast—report the theft, track the funds, and involve law enforcement or forensic experts.

Recovering Crypto from Specific Wallets & Platforms

Q: How to recover stolen crypto from Coinbase Wallet?

A: Report the theft to Coinbase immediately. If the stolen funds are still within Coinbase, they may freeze them. If withdrawn, recovery is unlikely.

Q: Can Coinbase recover stolen crypto?

A: Only if the funds remain within the Coinbase system. If transferred externally, Coinbase cannot retrieve them.

Q: How to recover stolen crypto from Trust Wallet?

A: Trust Wallet is non-custodial, meaning they cannot reverse transactions. However, you can track transactions and report the thief’s address to exchanges.

Q: Can you recover stolen crypto from Trust Wallet?

A: No, but you can monitor the stolen funds and alert exchanges if they are deposited somewhere traceable.

Q: How to recover stolen cryptocurrency on LinkedIn?

A: If you were scammed through LinkedIn, report the scammer’s profile, document evidence, and follow standard recovery steps (track funds, report to exchanges and authorities).

Law Enforcement & Legal Recovery

Q: Can the FBI recover stolen crypto?

A: Yes, in major cases. The FBI has successfully recovered stolen crypto in high-profile scams, but they focus on large-scale crimes.

Q: Can police recover stolen crypto?

A: It depends on your location and the police department's expertise. Many lack the tools to trace crypto but can assist with legal actions.

Q: Can the FCA recover stolen crypto?

A: No, but the UK’s Financial Conduct Authority (FCA) can investigate fraud cases and provide guidance on reporting scams.

Hiring a Hacker or Recovery Services

Q: How can I recover my stolen cryptocurrency through a hacker?

A: Be extremely cautious—most “recovery hackers” online are scams. Instead, contact reputable blockchain forensics firms like Chainalysis.

Q: Who can recover stolen crypto?

A: Experts in blockchain forensics, legal professionals, and sometimes law enforcement agencies can assist in recovering stolen crypto.