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How To Report Stolen Cryptocurrency?

How-To-Report-Stolen-Cryptocurrency

Cryptocurrency stolen is a growing concern in the digital world, and knowing how to respond quickly is crucial. In this guide, we’ll walk you through the essential steps to report stolen cryptocurrency, from identifying the theft to contacting relevant authorities and securing your digital assets. Whether you’ve fallen victim to a scam or a hack, this article will help you take the right actions to protect your investments and increase the chances of recovery.

Cryptocurrency-related crimes happen a lot more often than we think. They range from common crimes like keylogger hacks to advanced crimes like DeFi exchange hacks. Further, there are special cases like FTX, where the custodian itself turned into a hacker. Also, there are enough weird cases where crypto has been stolen at gunpoint.

In all these cases, the customer or the end user suffers the most. Even if they are compensated, these compensations are barely enough and often highly delayed, like the Mt. Gox hacks. In this article, we will guide you through the immediate steps that you need to take to ensure that you leave no chance to recover your crypto.

How to Report Stolen Cryptocurrency | Protect Your Digital Assets
How to Report Stolen Cryptocurrency | Protect Your Digital Assets
  • Record The Incident in Detail

The first thing you must do is to record the incident in as much detail as possible. Whether you record it on your laptop, on paper, on a video camera, in audio, or in any other form. Recording the incident is best just after it because that helps you remember every detail in the future.

This can not only increase your chances of recovery, but also greatly help law enforcement and investigators.

  • File a Police Complaint

The second most important thing is to file a complaint with the police with as many details as possible. The greater the details, the better they are equipped to help you.

For incidents that happen through physical contact, such as robbery at gunpoint or scammers stealing your crypto through physical meet-in events, dates, etc., a police complaint is the quickest way to get your crypto back.

In digital crimes, where assets are stolen online, the cybercrime division of the police helps you trace and recover your assets.

Even cryptos in large hacks, like the Axie Infinity hack by the Lazarus group, have been recovered with the joint efforts of Interpol, the FBI, and Norwegian police.

  • Prepare The Documents of Ownership

You must be able to prove that you own the crypto. This can be done using purchase receipts on crypto exchanges, showing your ability to control the wallet from which the crypto was stolen, and a few other legal documents.

Without documents proving your legal ownership, you cannot get your crypto back, even if it is fully recovered.

  • Inform Your Insurance Company, If Any

Though crypto insurance is rare, in many countries, laws allow you to fully insure your wealth, including movable and non-movable assets. In such cases, crypto is covered as a movable asset.

If your local laws and insurance support such claims, you need to inform them as soon as you file a police complaint. This is because, even if the criminals are not caught, there is a high possibility that your insurance will fully or partially cover your losses. 

However, most insurance companies only do so after a certain period when there is no hope from law enforcement. Further, if a full recovery is made at any time in the future, the proceeds (full or partial) go to the insurance company and not you.

  • Enlist a Private Blockchain Investigator

This is the last resort and the most potent one for recovering your crypto. Several blockchain experts and white-hat hackers provide services like crypto recovery, locating your funds, and identifying criminals.

One such well-known investigator is ZachXBT, who has solved many such crimes. 

However, these investigators come at a great cost, and unless your stolen crypto is worth several thousand dollars or millions, it is generally not worth hiring a private investigator. They are best suited for large hacks, such as exchanges, crypto custodians, etc.

  • Seek Community Assistance

Hacks usually occur in multiple accounts, which makes it easy to detect criminals. Further, the police are often more concerned about crimes in a pattern.

If your crypto is stolen, you should also contact the community for help and assistance. Your message might help many others safeguard their cryptocurrencies.

Frequently Asked Questions

Is it possible to recover stolen crypto?

Yes, there have been several incidents in which cryptocurrency was recovered from hackers through bait, incentives, or even rewards.

Can I claim lost crypto?

Yes, our third piece of advice in this article was to prepare documents proving your ownership. Once you have proved that you owned that stolen crypto, you can easily lay a claim.

Will Binance refund me if I get scammed?

If the fault lies with Binance, it has the legal compulsion to refund you. But, if you have lost crypto after falling victim to a scam, the onus lies on you.

Do crypto recovery companies work?

Yes, but these companies often take some time that may even extend to several months or years.

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