> ## Content Index > Fetch the complete content index at: https://bullquill.com/llms.txt > Use this file to discover other available public pages before exploring further. # Crypto recovery scam losses hit $1.4 billion in 2025, FBI says - URL: https://bullquill.com/crypto-recovery-scams-explained/ - Published: 2026-10-24T00:15:00.000Z - Updated: 2026-10-24T00:25:48.000Z - Description: Fake recovery firms, fictitious law firms and IC3 impersonators promise to return stolen crypto for a fee. The FBI says no private firm can seize it, and real government help is free. - Author: Rowan Ashby - Tags: Crypto, Explainer, Crypto Scams, FBI, IC3, Bitcoin, #lang-en, #evergreen, #tr-crypto-recovery-scams-explained ## Key takeaways - A crypto recovery scam targets people who have already lost money to a crypto fraud. Someone offers to get the money back for a fee, and paying it only adds to the loss. - The FBI's Internet Crime Complaint Center (IC3) received 10,516 recovery-scam complaints in 2025, with $1.4 billion in reported losses. - The FBI says private recovery companies cannot issue seizure orders for cryptocurrency, and no law firm is an "officially authorized partner" of US government agencies. - Real government help is free. The FBI and IC3 do not charge victims, and IC3 does not contact victims by phone, email, social media or messaging apps. - Legitimate options include reporting to IC3 and the FTC, contacting the exchange you used, and hiring a licensed attorney you find and check yourself, usually without any promise of results. ## What is a crypto recovery scam? A crypto recovery scam promises to get back money lost to crypto fraud, for a fee. The FBI's IC3 received 10,516 such complaints in 2025, with $1.4 billion in reported losses. No private firm can seize or reverse stolen crypto for an upfront fee. The US Commodity Futures Trading Commission (CFTC) calls these schemes a form of advance-fee fraud. In a July 30, 2024 advisory, it said victims of trading frauds are often targeted again. Recovery is "rare," it said, and harder still when the money was converted into crypto such as bitcoin or Tether. The CFTC added that the same gang behind the original fraud may also run the recovery scam. The Federal Trade Commission (FTC) describes the same pattern for all types of fraud. Scammers buy "sucker lists" of people who have paid scammers before. Then they contact them posing as a government agency, consumer group, law firm or the original company. Most recovery scams follow a crypto investment scam, often called "pig butchering." Bullquill's [explainer on how pig-butchering scams work](https://bullquill.com/crypto-investment-scams-pig-butchering-explained/) covers that first stage. This guide covers what happens afterwards. ## How big is the problem? FBI figures Recovery scams have grown from a niche tactic into a billion-dollar category in the FBI's data. The figures below are losses reported to IC3\. They do not show total losses, because many victims never file a complaint. | Period | What the FBI reported | Source | | -------------------- | --------------------------------------------------------------------------------- | ------------------------------------------------------------------ | | Feb 2023 to Feb 2024 | Over $9.9 million lost to fictitious law firms by victims of earlier crypto scams | FBI IC3 alert I-062424-PSA (June 24, 2024) | | Dec 2023 to Feb 2025 | More than 100 reports of scammers posing as IC3 employees | FBI IC3 alert PSA250418 (April 18, 2025) | | Calendar year 2025 | 10,516 recovery-scam complaints; $1.4 billion in reported losses | FBI IC3 2025 Internet Crime Report, via The Block (April 12, 2026) | | Calendar year 2025 | 181,565 crypto-related complaints; about $11.37 billion in reported losses | FBI IC3 2025 Internet Crime Report, via The Block | The jump between the first two rows and the 2025 total partly reflects a wider definition. The early alerts counted narrow tactics, while the annual report groups all recovery schemes together. According to The Block's summary, the 2025 report describes fraudsters posing as law firms, government officials or IC3 itself to take more money from people who had already been scammed. ## The three main types of crypto recovery scam ### 1\. Fake "fund recovery" and crypto-tracing firms The FBI first flagged this tactic in August 2023 (alert I-081123-PSA). Firms claiming to trace and recover crypto contact victims directly on social media or messaging apps. They also advertise in search results, in social media posts, and in the comment sections of news articles and videos. They charge an upfront fee or deposit. The FBI says the firm then either stops replying or delivers an incomplete or inaccurate "tracing report" and asks for more money. When BleepingComputer reported on the alert, it found bot accounts flooding replies to a public request for recovery help with offers from recovery "services." ### 2\. Fictitious law firms In June 2024 (alert I-062424-PSA) and again in August 2025 (alert I-081325-PSA), the FBI warned about fake law firms targeting crypto scam victims, particularly older people. According to the FBI, these "lawyers": - claim to work with the FBI, the Consumer Financial Protection Bureau or other government bodies, sometimes using fake letterheads and insignia; - refer to agencies that do not exist, such as an "International Financial Trading Commission (INTFTC)"; - say the victim is on a government list of scam victims and can recover funds through "legal channels"; - know the exact amounts and dates of the victim's earlier transfers, which makes them seem credible; - claim the money is held at a foreign bank and ask the victim to register on a fraudulent banking platform; - ask for a portion of fees upfront, "back taxes," or bank fees to "verify identity," often in crypto or gift cards; - refuse to show a law license or join a video call. The FBI's August 2025 alert states it plainly: "There are no law firms which are officially authorized partners of US Government agencies." ### 3\. People posing as IC3 or FBI staff In April 2025 (PSA250418), the FBI warned that scammers were posing as IC3 employees. Some created fake personas and joined online groups for fraud victims, posing as fellow victims. They then recommended a supposed IC3 official who would make contact on Telegram. The FBI called the offer of recovered funds "a ruse to revictimize those who have already lost money to scams." The rule here is simple. IC3 says it will never ask for payment to recover stolen funds. It also never contacts victims directly by phone, email, social media, mobile apps or public forums. ## Red flags: how to spot a crypto recovery scam The FBI, CFTC and FTC warnings share the same warning signs. Treat any one of these as a reason to stop: - **They contacted you first.** Unsolicited offers by text, message, social media reply or "victim support group" are the most common starting point. - **A fee comes before any results.** "Retainer," "processing fee," "gas fee," "tax," "unlock fee" or "verification deposit" are all advance-fee requests. The FTC says government agencies and legitimate organisations "will never ask for money to help you get a refund." - **Guaranteed recovery.** Legitimate lawyers and investigators cannot promise an outcome. The FTC also notes that real agencies won't guarantee you will get your money back. - **Claims of seizure power or government partnership.** The FBI says private recovery companies "cannot issue seizure orders to recover cryptocurrency." - **Payment in crypto, gift cards or wire transfers**, or a request to pay a "third party" for secrecy. - **Requests for your seed phrase, private keys or remote access** to your computer. No legitimate recovery process needs these. Our guide to [securing a crypto wallet seed phrase](https://bullquill.com/how-to-secure-crypto-wallet-seed-phrase/) explains why sharing it hands over the wallet. - **No checkable identity.** No verifiable bar license, no physical office, a new website, or a refusal to appear on video. - **A refund larger than your loss.** The FTC warns that a "refund" for too much, followed by a request to return the difference, is a scam. ## Can stolen crypto actually be recovered? Sometimes, but the process looks nothing like a recovery-scam pitch. Blockchain transactions cannot be reversed. As the FTC puts it, you can usually only get crypto back "if the person you paid sends it back." Real recoveries tend to come from three routes. ### Law enforcement seizures and forfeiture Governments can freeze and seize crypto through court orders, often with help from exchanges and stablecoin issuers. On July 21, 2026, the US Attorney's Office for the District of Columbia filed five civil forfeiture complaints seeking more than $25 million in crypto. According to The Block, one complaint sought about $285,000 linked to a recovery scam. In that case, a person who had already lost money was contacted by fraudsters claiming to have recovered it, and was charged a fee. China's attempt to [confiscate 61,800 bitcoin tied to an older fraud](https://bullquill.com/china-seeks-confiscation-qian-zhimin-61800-bitcoin/) is another example of seizure through the courts. Victims pay nothing to start these processes, and they can take months or years. ### Fast freezes through IC3 Speed matters most. The FBI's 2025 report says IC3's Recovery Asset Team took 3,900 fraud response actions on attempted thefts totalling more than $1.1 billion, and $679 million was frozen, according to Help Net Security's summary. Most of that work involves bank transfers reported quickly, not crypto sent weeks earlier. Even so, it shows why reporting early is worth doing. ### Civil lawsuits through a licensed attorney Victims can hire a lawyer to sue, seek court orders to freeze identified wallets, or subpoena exchanges. This is legitimate, but it is not a recovery service. Find the lawyer yourself, check their license with the state bar, and expect an honest assessment rather than a guarantee. The FBI notes that many fake firms operate under false names, which also makes it hard to sue them later. The CFTC warns that even court-ordered repayment may not return lost money if wrongdoers lack assets. ## What to do if you have lost crypto: a checklist 1. **Stop sending money.** Do not pay any further "fee," "tax" or "deposit," whoever asks for it. 2. **Secure what is left.** Move remaining funds to a new wallet with a fresh seed phrase if a wallet may be compromised. Change passwords and turn on strong two-factor authentication. 3. **Collect evidence.** Save wallet addresses, transaction IDs (hashes), dates, amounts, website addresses, usernames and screenshots of all messages, including with any "recovery" contacts. 4. **Report to IC3** at ic3.gov. The FBI asks for the contact method, the scammer's identifiers and transaction details such as amounts, dates and crypto addresses. 5. **Report to the FTC** at ReportFraud.ftc.gov. For trading platforms, the FTC also points to the CFTC complaint form and the SEC tips portal. 6. **Contact the exchange you used** through its official website or app only, not a support number found in search ads or social media replies. 7. **Verify anyone claiming to be the FBI** by calling your local FBI field office on a number you look up yourself. 8. **Outside the US**, report to your national police cybercrime unit and financial regulator. 9. **Expect follow-up scams.** After you post about a loss or file a report, treat any unexpected offer of help as suspicious. ## What it means Recovery scams are a business model built on the first fraud. Once a victim is identified, the same networks, or buyers of their victim lists, can return with a new story: a lawyer, a tracing firm, a government official. Reported losses of $1.4 billion in 2025 suggest this second stage now costs victims about a fifth as much as the $7.2 billion lost to crypto investment fraud that year, based on the same FBI report. The defence is the same in every case. Legitimate recovery efforts by government agencies are free, start with a report you file yourself, and come with no guarantee. Any offer that reverses that order, by contacting you first, charging upfront and promising results, fits the pattern the FBI has described in four alerts since 2023 and in its annual report. For more on scams, enforcement and wallet security, see Bullquill's [crypto scams coverage](https://bullquill.com/tag/crypto-scams/). ## Frequently asked questions ### Can a crypto recovery service get my stolen crypto back? The FBI warns that private recovery companies cannot issue seizure orders for cryptocurrency. Firms that contact you, charge an upfront fee and promise recovery are very likely running a second scam. Real recoveries usually come from law enforcement seizures or court action, and there is no guarantee. ### How much money is lost to crypto recovery scams? The FBI's Internet Crime Complaint Center received 10,516 recovery-scam complaints in 2025, with $1.4 billion in reported losses, according to its 2025 Internet Crime Report. Reported figures understate the total because many victims do not file complaints. ### Does the FBI or IC3 charge a fee to recover lost crypto? No. The FBI says law enforcement does not charge victims a fee to investigate crimes, and IC3 never asks for payment to recover stolen funds. IC3 also does not contact victims by phone, email, social media, messaging apps or public forums. ### How do I report a crypto recovery scam? In the US, file a report at ic3.gov and at ReportFraud.ftc.gov, including wallet addresses, transaction IDs, dates, amounts and all messages with the scammer. Contact the exchange you used through its official site. Outside the US, report to your national police cybercrime unit and financial regulator. ## Sources - [FBI IC3: Increase in companies falsely claiming an ability to recover funds lost in cryptocurrency investment scams, I-081123-PSA (Aug. 11, 2023)](https://www.ic3.gov/PSA/2023/PSA230811?ref=bullquill.com) - [FBI IC3: Fictitious law firms targeting cryptocurrency scam victims offering to recover funds, I-062424-PSA (June 24, 2024)](https://www.ic3.gov/PSA/2024/PSA240624?ref=bullquill.com) - [FBI IC3: Fraudsters impersonating IC3 employees to help recover lost funds, PSA250418 (April 18, 2025)](https://www.ic3.gov/PSA/2025/PSA250418?ref=bullquill.com) - [FBI IC3: Fictitious law firms targeting cryptocurrency scam victims, I-081325-PSA (Aug. 13, 2025)](https://www.ic3.gov/PSA/2025/PSA250813?ref=bullquill.com) - [FBI Internet Crime Complaint Center: Annual reports (2025 Internet Crime Report)](https://www.ic3.gov/AnnualReport/Reports?ref=bullquill.com) - [The Block: FBI says crypto-related fraud losses hit record $11.4 billion in 2025 (April 12, 2026)](https://www.theblock.co/amp/post/397134/fbi-says-crypto-related-fraud-losses-hit-record-11-4-billion-in-2025-with-seniors-bearing-the-brunt?ref=bullquill.com) - [Help Net Security: Cybercrime losses break the $20 billion mark (April 7, 2026)](https://www.helpnetsecurity.com/2026/04/07/online-crime-financial-losses-fbi-report/?ref=bullquill.com) - [BleepingComputer: FBI warns of increasing cryptocurrency recovery scams (Aug. 14, 2023)](https://www.bleepingcomputer.com/news/security/fbi-warns-of-increasing-cryptocurrency-recovery-scams?ref=bullquill.com) - [CFTC: CFTC warns customers to watch for follow-on frauds, Release 8936-24 (July 30, 2024)](https://www.cftc.gov/PressRoom/PressReleases/8936-24?ref=bullquill.com) - [Federal Trade Commission: Refund and recovery scams](https://consumer.ftc.gov/articles/refund-and-recovery-scams?ref=bullquill.com) - [Federal Trade Commission: What to know about cryptocurrency and scams](https://consumer.ftc.gov/articles/what-know-about-cryptocurrency-and-scams?ref=bullquill.com) - [US Attorney's Office, District of Columbia: Investigations into cryptocurrency scams result in seizure of more than $25 million (July 2026)](https://www.justice.gov/usao-dc/pr/investigations-cryptocurrency-scams-result-seizure-more-25-million?ref=bullquill.com) - [The Block: US seeks forfeiture of $25 million in crypto tied to global fraud investigations (July 22, 2026)](https://www.theblock.co/news/regulation/2026-07-22-us-seeks-forfeiture-25-million-crypto-409194?ref=bullquill.com) This article is for information only and is not investment advice.