As cryptocurrency has grown in popularity, so too has the number of scams surrounding it. The decentralised nature of digital currencies, combined with a lack of regulation and the anonymity of blockchain transactions, creates the perfect environment for fraudsters. Many unsuspecting individuals are lured into investment scams, phishing attacks, or fake platforms, only to find themselves out of pocket, often by thousands of pounds.
The financial and emotional toll of these scams can be devastating. If you’ve fallen victim, know that you are not alone. There are steps you can take to try and recover your money. At CEL Solicitors, we’ve supported many victims of crypto fraud, helping with cryptocurrency scam recovery and tracing stolen crypto funds through legal routes. Our team has traced over £100 million worth of stolen cryptocurrency assets, including complex cases involving dozens of wallets and major exchanges.
In this guide, we’ll walk you through the top five ways to recover funds from a cryptocurrency scam, offer expert advice, and share practical tips to help you protect yourself from future cryptocurrency fraud.
How Do Cryptocurrency Scams Work?
Cryptocurrency fraud refers to deceptive tactics used to trick individuals into sending their digital assets to scammers. Fraudsters often pose as legitimate investment firms, trusted platforms, or even public figures to gain your trust and steal your money.
Common Crypto Scam Tactics Include:
- Fake Investment Scams: These schemes promise high returns with little to no risk. Victims are encouraged to deposit funds into fake platforms, only to find they cannot withdraw them later.
- Phishing Scams and Fraudulent Wallets: Scammers create professional-looking websites or send emails pretending to be from trusted crypto exchanges. They ask for login credentials or private wallet keys.
According to the Financial Conduct Authority (FCA), crypto investment scams in the UK are on the rise, with many involving phishing tactics and fraudulent platforms.
- Ponzi Schemes: These operate by using money from new investors to pay earlier investors. Eventually, they collapse once recruitment slows. OneCoin, run by Ruja Ignatova, is one of the most infamous crypto Ponzi schemes. It defrauded investors of an estimated $4 billion worldwide and had no real blockchain behind it.
- Fake Giveaways and Social Media Scams: These often impersonate celebrities or crypto influencers. Victims are encouraged to “send a little to get a lot back” – which never happens.
- Impersonation of Legitimate Crypto Exchanges: Fraudsters clone exchange websites or pretend to be customer service agents in order to access your wallet.
In one high-profile UK case, authorities seized £5.2 billion worth of Bitcoin from Jian Wen, a former takeaway worker involved in a massive crypto fraud scheme. This case highlights the sheer scale of crypto crime.
Top 5 Ways to Recover Funds from a Crypto Scam
If you’ve fallen victim to a cryptocurrency scam, acting quickly and methodically can improve your chances of recovery.
1. Contact the Crypto Exchange Immediately
Report the fraud to the platform where the transaction took place. While crypto transactions are typically irreversible, some exchanges have fraud detection tools and may be able to freeze stolen funds if contacted in time.
Useful links:
2. Trace the Transaction Using Blockchain Explorers
Blockchain transactions are publicly recorded. You may be able to use tools like Etherscan or Blockchain.com Explorer to identify where your funds were sent.
While this won’t get your money back directly, it is valuable evidence that can support a cryptocurrency scam recovery case or police investigation.
At CEL Solicitors, our team has specialist training and uses cutting-edge software, designed specifically to trace and aid in the recovery of crypto assets.
We were able to help one client who lost 107 Bitcoin (about £81k at the time of writing) despite their assets being washed through a complex web of 40 different wallets before eventually arriving at the scammer’s Binance account.
3. Report the Scam to Authorities
Fraud should always be reported to the proper authorities. In the UK, this includes:
In addition to reporting the crime, gathering detailed evidence can significantly improve your chances of recovery. CEL Solicitors offers a dedicated Crypto Investigation Report. This professional tracing service uses blockchain analysis to identify where your funds were sent.
We have traced over £100 million worth of stolen cryptocurrency assets for clients. For example, one client lost 107 Bitcoin, which we successfully traced through over 40 different wallets before identifying the funds’ final destination at Binance. Reports like these provide crucial evidence that can be shared with police, exchanges or courts to strengthen your case.
4. Seek Help from Crypto Fraud Recovery Services
Some legal firms and investigation agencies specialise in cryptocurrency scam recovery. They can guide you through the legal process and liaise with exchanges or authorities on your behalf.
Be cautious. Sadly, some “recovery agents” are scammers themselves. Look for trusted firms with a proven track record, transparent processes and clear pricing.
At CEL Solicitors, we recently helped a client recover over £8,000 lost in a crypto investment scam through professional legal intervention and investigation support.
5. Monitor and Secure Your Digital Footprint
Change all compromised credentials and monitor your accounts for unusual activity. If your ID documents or passwords were involved, consider using an identity protection service.
How to Protect Yourself from Future Crypto Scams
Prevention is always better than cure. Here’s how you can stay safe going forward:
Use Secure Wallets and Enable Two-Factor Authentication (2FA)
Store your crypto in hardware wallets such as Ledger or Trezor. These are much more secure than exchange wallets. Always enable 2FA for any crypto account you hold.
Verify Investment Platforms Before Depositing Funds
Before sending any money, research the platform carefully. Check reviews, social media presence and regulatory status.
Use the FCA’s Scam Warning List to check if a platform is already known to be fraudulent.
Be Cautious of “Too Good to Be True” Offers
Avoid social media giveaways, celebrity-endorsed crypto schemes or any investment that promises high returns with no risk. If it sounds too good to be true, it probably is.
Time to Act
Recovering stolen cryptocurrency can feel overwhelming, but it is possible. If you’ve been a victim, act quickly:
1. Contact the exchange
2. Trace the transaction
3. Report it to the authorities and consider a Crypto Investigation Report
4. Get professional recovery support
5. Secure your accounts
You can take back control.
Need Expert Legal Support?
So, if you’ve lost money in a cryptocurrency scam — you’re not alone, and help is available.
At CEL Solicitors, we specialise in helping people just like you try to recover stolen crypto funds. Whether you need legal support to pursue recovery or want to understand where your stolen cryptocurrency has gone, we’re here to help.
- Lost money in a crypto scam? We can guide you through the recovery process.
- Want to find out where your stolen crypto ended up? Our expert crypto tracing service can track transactions and provide a full investigation report.
Take the first step today and contact us for a free consultation and find out how we can support you.
