FBI Warns of Fake ‘Crypto Recovery Law Firms’ Targeting Scam Victims

[lingriiddd]

The U.S. Federal Bureau of Investigation (FBI) has issued a fresh public service announcement warning victims of crypto scams about fraudulent “law firms” that claim they can recover stolen funds.

According to the bureau, these fictitious firms specifically target individuals who have already been scammed, putting them at risk of losing more money or compromising their personal information.

Key Red Flags

The FBI cautions against:

Accepting unsolicited help from anyone recommending a “crypto recovery law firm”

Paying a firm that demands cryptocurrency or prepaid gift cards as payment

Trusting law firms that contact you unexpectedly — especially if you haven’t reported the original scam to law enforcement

“Be cautious of law firms contacting you unexpectedly, especially if you have not reported the crime to any law enforcement or civil protection agencies,” the notice reads.

Part of a Larger Trend

This is the FBI’s third warning on the issue, following similar advisories in August 2023 and June 2024. It comes amid sobering statistics from blockchain security firm CertiK, which recorded $2.5 billion lost to hacks, exploits, and scams in just the first half of 2025.

While some exchanges and companies have successfully recovered stolen funds, many victims end up turning to third parties — making them prime targets for “double victimization” scams.

Law Enforcement and Crypto Seizures

The FBI is frequently involved in crypto-related fraud cases, seizures, and investigations. U.S. Treasury Secretary Scott Bessent has said that seized digital assets will go toward the national crypto and Bitcoin stockpile, once any victim compensation is addressed.

Recent examples include:

April 2025 – Dallas FBI seized $2.4 million in Bitcoin allegedly tied to a hacking group member

July 2025 – Federal lawsuit filed seeking government claim over the seized funds

Escalating Threats Against Crypto Holders

Beyond scams, some criminals have resorted to physical threats and kidnappings to steal digital assets. SatoshiLabs founder Alena Vranova estimates that at least one Bitcoiner a week worldwide is targeted in such incidents.

Bottom line: The FBI’s message is clear — if someone offers to recover stolen crypto for a fee, especially in crypto or gift cards, treat it as a scam. Victims should report incidents directly to law enforcement rather than relying on unsolicited “recovery” services.

[jacson4]

This warning couldn’t come at a better time. Scammers preying on scam victims is one of the cruelest tactics in the crypto space — it’s literally exploiting desperation. Many people, after losing life savings in a rug pull or phishing hack, will cling to any glimmer of hope. Fake “recovery firms” know this and weaponize it. The fact that some even demand more crypto or gift cards up front is an instant red flag. If someone has already been burned once, they’re twice as vulnerable emotionally — which is why the FBI calls this “double victimization.” Honestly, the only safe path is to report to law enforcement directly and avoid anyone who cold-emails or DMs with promises of “getting your funds back.” If it sounds too good to be true in crypto, it’s always a scam.

[Nahid10]

What makes this trend even more alarming is the scale of losses: $2.5B gone in just the first half of 2025. That’s the perfect feeding ground for these fake recovery outfits. And the painful truth is, even with the FBI or blockchain analytics tools, stolen funds are rarely recovered once they’re moved through mixers, cross-chain swaps, and shady exchanges. So these “law firms” are essentially selling false hope. The crypto community really needs more education around this — victims should know that law enforcement does have mechanisms for seizures (we’ve seen millions in BTC confiscated this year), but it’s never through a random Telegram group or unsolicited email. The rule of thumb: legit recovery doesn’t ask you for upfront payment, and it definitely doesn’t ask for crypto.