Cryptocurrency’s rapid adoption has unfortunately been paralleled by an equally rapid rise in scams and fraudulent schemes. According to Chainalysis’ Crypto Crime Report 2023, victims lost over $5.9 billion to crypto scams globally in 2022, making scams the largest category of crypto-related crime. From Ponzi-style investment schemes to fake exchanges, fraudsters prey on trust and the promise of quick returns.
At Crypto Asset Recovery, we specialize in exposing these schemes, tracing stolen assets, and providing victims with the support they need to seek justice.
Crypto scams are constantly evolving, but most fall into a few broad categories:
Ponzi & Investment Schemes: Fraudulent platforms promising unrealistic returns. Victims often see small early payouts designed to build trust before the fraudsters vanish with larger sums.
Romance & Social Engineering Scams: Fraudsters build online relationships to manipulate victims into investing in “guaranteed” crypto opportunities.
Impersonation Scams: Fake websites, apps, or social media profiles pretending to be legitimate exchanges or wallet services.
Pump-and-Dump Manipulation: Coordinated efforts to artificially inflate a coin’s value before the perpetrators sell off at the peak, leaving investors with losses.
Rug Pulls: Common in the DeFi (Decentralized Finance) space, where developers abandon a project after collecting large sums from investors.
Tracing scams requires a multidisciplinary approach that goes beyond simple blockchain analysis. Here’s how we do it:
Case Investigation
We start by gathering all relevant evidence: transaction IDs, wallet addresses, communication history, and platform details. This forms the basis for mapping the fraud’s flow.
Blockchain Forensics
Using advanced blockchain analysis tools, we follow the movement of funds across wallets, smart contracts, and exchanges. Even when fraudsters attempt to obscure their tracks, the blockchain’s immutability leaves behind patterns we can decode.
Fraud Pattern Identification
Many scams share common behaviors. By identifying links between fraudulent wallets and known scam databases, we can often connect isolated cases to larger criminal networks.
Collaboration with Exchanges & Regulators
Once we identify where funds were funneled, we liaise with exchange compliance teams to freeze suspicious accounts. We also coordinate with regulatory bodies and law enforcement to escalate the fraud investigation.
In 2022, investment scams accounted for over 65% of all crypto-related crimes, making them the most damaging sector of fraud.
The average victim loses $2,600 to $7,000 per case, but some large-scale Ponzi schemes have drained billions.
Scam wallet addresses are increasingly being blacklisted, giving victims higher chances of tracing assets if they act quickly.
Expert Investigators: Skilled in identifying fraud patterns and tracing complex scam networks.
Global Reach: Collaborations with regulatory bodies and exchanges worldwide.
Transparency: Victims are informed throughout the process with clear case progress updates.
Persistence: Even if immediate recovery is not possible, we keep records active for when fraudsters attempt to liquidate assets.
Falling victim to a scam can feel humiliating and disheartening, but it’s important to remember that fraudsters thrive on silence. By coming forward and seeking professional tracing services, you not only increase your chances of recovering funds but also help dismantle criminal networks that prey on others.
At Crypto Asset Recovery, we believe that every fraudulent transaction leaves a trail; and with the right tools and partnerships, we can follow it back to its source.