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What Is Crypto Asset Recovery?

Crypto asset recovery is the process of tracing and reclaiming stolen cryptocurrency or lost cryptocurrency through legal, technical, and investigative methods.

When someone’s digital assets are taken or transferred without consent, specialists analyze wallet addresses and transactions recorded on the blockchain to determine where the funds went and whether they can be connected to a real person or organization.

This work involves multiple parties, including law enforcement, exchanges, and legal professionals who have the ability to coordinate formal seizure or restitution efforts.

Because cryptocurrency operates outside traditional banking systems, the challenges of recovery include identifying who controls the wallets and proving ownership or loss through detailed documentation and verification.

In many cases, users can strengthen their position by maintaining clear transaction records, communication logs, and exchange receipts that link their funds to specific accounts.

Crypto asset recovery teams assist victims by reconstructing the digital trail of stolen assets, often in cooperation with government agencies and compliant exchanges.

The ultimate goal is to connect fraudulent activity to real-world entities and pursue avenues for compensation when possible.

While not every case results in a full return of lost funds, recovery efforts can help victims regain control and improve the odds of a secure and lawful resolution.

When Recovery Is Possible (Seizure, Forfeiture, Remission/Restoration)

Crypto asset recovery becomes feasible when law enforcement has identified and seized funds tied to a verified scam or theft.

Agencies like the FBI collaborate with international partners under international laws to recover assets and return them to legitimate owners through structured legal procedures.

Victims can then file petitions for remission or restoration – formal requests to reclaim losses based on evidence, transparency, and timing.

Legal teams with the right expertise help clients create strong documentation, explain their losses, and respond to inquiries from authorities while maintaining proper security when storing sensitive financial data.

These recoveries represent a narrow but meaningful form of justice that relies on cooperation among victims, investigators, and lawyers experienced in this highly technical business of financial tracing and restitution.

Situations where recovery may be possible:

• When assets have been seized by the FBI or other law enforcement agencies during a fraud or theft investigation.
• When wallets tied to scams are under forfeiture proceedings in U.S. or foreign courts governed by international laws.
• When victims can access documentation linking their transfers to a known scam address or seizure report.
• When exchanges or custodians voluntarily cooperate by freezing accounts and assisting investigators.
• When victims report promptly and can demonstrate ownership through verifiable transaction records.
• When legal counsel employs advanced strategies and expertise to align claims with active government recovery programs.

When Recovery Is Unlikely (No Seizure, No Trace, No Docs)

In many cases, crypto asset recovery is unlikely because the stolen funds were never located, seized, or tied to an active investigation by the Gov or any law enforcement agency.

When there is no trace of the transaction path or wallet destination, even advanced blockchain forensics may reach a dead end.

Victims who can’t pay for tracing services or who have deleted or lost key documentation face additional obstacles in establishing a credible claim.

The legal complexities of digital asset ownership make recovery even harder when there’s no verifiable evidence of the transfer, wallet address, or correspondence with the scammer.

If the scam involved smart contracts that automatically dispersed the funds or mixed them across decentralized platforms, tracing them becomes nearly impossible.

Cases where victims have lost passwords or private keys also fall outside recovery options, since no third party can access or override those credentials.

Without proper documentation or linkage to a government seizure, the likelihood of restitution drops significantly.

For these reasons, victims are urged to preserve every piece of evidence early and consult professionals before taking irreversible steps that might compromise potential recovery.

How Crypto Scams Move Money

Crypto scammers use sophisticated techniques to move funds quickly and obscure their origins, making stolen cryptocurrency difficult to trace.

Most schemes begin with victims being persuaded to transfer assets to a “trusted” investment wallet or exchange account that the scammer secretly controls.

Once the transfer is complete, the funds are immediately split into smaller amounts and sent through multiple wallet addresses, a process known as “chain hopping” or “peeling.”

Scammers often route transactions through decentralized exchanges, mixers, or cross-chain bridges to make tracing harder and exploit jurisdictions with weak enforcement.

Some even use automated scripts and smart contracts to move crypto continuously, eliminating predictable patterns investigators might follow.

The anonymity of blockchain wallets allows criminals to hide behind layers of addresses without revealing their true identity or location.

Meanwhile, victims are shown fake dashboards or trading interfaces displaying inflated profits to prolong the scam and delay suspicion.

By the time the deception is uncovered, the funds have often traveled through dozens of wallets and exchanges, crossing borders and complicating the recovery process for both victims and investigators.

On-Ramps and Off-Ramps (Banks, Exchanges, Wallets)

In cryptocurrency fraud cases, scammers rely on on-ramps and off-ramps (the points where digital and traditional currencies intersect) to move and conceal stolen funds.

On-ramps like banks and exchanges allow victims to convert cash into crypto, while off-ramps such as wallets and decentralized platforms let scammers withdraw or transfer assets anonymously.

Understanding these pathways helps investigators and recovery lawyers pinpoint where money entered or exited the legitimate financial system.

• On-Ramps: Bank accounts, wire transfers, credit card purchases, and regulated crypto exchanges (e.g., Coinbase, Binance).
• Off-Ramps: Private wallets, decentralized exchanges (DEXs), mixers, and offshore trading platforms.
• Bridges: Tools that transfer assets between blockchains, often exploited to obscure movement.
• Custodial Services: Sometimes used by scammers to temporarily store or swap funds before dispersal.
• Peer-to-Peer Transactions: Used to bypass compliance requirements and make tracing more difficult.

Fake Platforms, Mixers, Cross-Chain Hops

Many crypto scams rely on a combination of fake investment platforms, laundering tools, and rapid token transfers to make stolen assets difficult to trace.

Fake platforms often serve as the starting point: victims deposit funds into what appears to be a legitimate dashboard, only for those assets to be routed immediately into scam-controlled wallets.

Once the scammers receive the funds, they frequently move them through mixers: services designed to obscure transaction origins by blending deposits from multiple users.

These mixers break the on-chain trail into fragments, complicating attribution and making it harder for investigators to connect individual payments to a specific victim.

Beyond mixers, scammers often rely on cross-chain hops, transferring assets across different blockchains using bridges or swap protocols.

This tactic exploits differences in tracking tools and regulatory oversight between chains, creating breaks in continuity that slow down forensic analysis.

Assets might start on Ethereum, jump to a sidechain, be converted into a stablecoin, and then be bridged to yet another network, generating multiple layers of obfuscation.

Criminal groups also frequently combine these methods (fake platforms, mixers, and multi-chain transfers) to create laundering patterns that resemble legitimate trading activity.

Evidence That Survives (TXIDs, Statements, Chats)

Even when scammers shut down fake platforms or delete accounts, critical evidence almost always survives, and this information can make the difference in determining whether recovery is possible.

Blockchain transactions generate permanent records, meaning TXIDs and wallet interactions remain visible on-chain even after scammers disappear.

Exchange statements, bank records, and app screenshots also help establish how much money was lost and where it was sent.

Communication logs (texts, emails, social media messages, or chat app histories) often reveal the scammer’s tactics, timeline, and the false claims used to manipulate victims.

These records help lawyers and investigators recreate the full sequence of events, link a victim’s transfers to known scam networks, and potentially match them to seizure warrants.

The more evidence a victim can preserve, the stronger their case becomes during any government review or recovery process.

Useful evidence includes:

• TXIDs (transaction IDs) showing blockchain transfers.
• Wallet addresses used to send or receive funds.
• Exchange statements documenting purchases, transfers, or withdrawals.
• Bank statements showing crypto-related payments or transfers.
• Screenshots of fake platforms, dashboards, or error messages.
• Chat logs or messages with the scammer detailing instructions or false promises.
• Emails or notifications from exchanges indicating login attempts or security alerts.
• URLs, platform names, or app details connected to the fraudulent scheme.

The Recovery Path: From Investigation to Potential Return

Recovering stolen crypto is not a matter of reversing transactions.

It follows a structured legal and investigative pathway that begins with identifying how the scam occurred and ends, in rare qualifying cases, with the potential return of seized funds.

The recovery path starts when victims report the fraud and provide evidence that helps investigators determine whether the stolen assets are part of a larger criminal operation.

If the scam aligns with networks already under investigation, law enforcement agencies may open or expand a case to trace the flow of funds across wallets, exchanges, mixers, and cross-chain transfers.

When investigators identify scam-controlled wallets, they may seek to freeze or seize those assets, placing them under federal control through formal forfeiture proceedings.

Only after seizure and forfeiture are complete can victims potentially file petitions for remission or restoration, demonstrating their losses and connection to the confiscated wallets.

Because each step requires time, coordination, and legal action, the recovery pathway is deliberate, not immediate, and depends heavily on whether investigators can link a victim’s transfers to seized assets.

While not every case reaches the point of recovery, understanding this trajectory helps victims recognize what is possible and why legitimate recovery efforts differ dramatically from “guaranteed fund retrieval” scams.

Law Enforcement Investigations

Law enforcement agencies have increasingly developed procedures and technical capacity to trace, freeze, and seize cryptocurrency assets when they are linked to fraud, money laundering, or other illicit activity.

Investigators begin by performing blockchain analysis, using forensic tools to map transaction flows, identify clusters of wallet addresses, and trace transfers from victims through layers of wallets, mixers, bridges, and exchanges.

Once a suspect wallet or group of wallets is identified, authorities may obtain a court order or warrant compelling cryptocurrency exchanges or custodial services to freeze accounts and surrender funds associated with the scam.

Exchanges typically comply with such orders because regulated platforms must follow Know-Your-Customer (KYC) and anti-money-laundering (AML) rules.

From there, seized crypto is transferred into government-controlled wallets and often retained under custody (for example, by the U.S. Marshals Service) while prosecutors or investigators decide whether a criminal or civil forfeiture action should proceed.

This is the foundation for legitimate recovery efforts: only when wallets are lawfully seized and forfeited does a real path emerge for victims to seek restitution.

Recent public examples illustrate the scale at which this can happen.

In 2025, the U.S. Secret Service together with the Federal Bureau of Investigation seized more than $225.3 million in alleged proceeds of cryptocurrency investment fraud.

Government agencies typically involved in crypto scam seizures include:

• Federal Bureau of Investigation (FBI): Leads investigations into crypto-enabled fraud, money laundering, and other serious cybercrimes.
• U.S. Secret Service (USSS): Investigates financial crimes and helps trace fraudulent transactions tied to investment scams and illicit crypto networks.
• Internal Revenue Service — Criminal Investigation (IRS-CI): Engages when tax crimes, money laundering, or financial crimes rely on crypto funds.
• Department of Justice (DOJ): Files criminal charges or civil forfeiture complaints, leading legal proceedings that enable seizures and victim restitution.
• U.S. Marshals Service (USMS): Manages custody, storage, and liquidation or retention of seized digital assets.
• Financial Crimes Enforcement Network (FinCEN): Provides financial intelligence, enforces AML regulations, and supports investigations involving suspicious crypto activity.
• Homeland Security Investigations (HSI) / U.S. Department of Homeland Security (DHS): Handles cross-border and transnational crypto crimes, including smuggling, trafficking, and international fraud.

Asset Seizure & Forfeiture

When law enforcement decides a cryptocurrency wallet or cluster is tied to criminal activity (such as fraud, money laundering, or other illicit schemes) they may initiate a legal process to seize and forfeit those digital assets.

Because cryptocurrency is treated as property under U.S. forfeiture laws, authorities can freeze or take custody of wallets identified during investigations.

Once assets are seized, they’re transferred to government-controlled wallets and often managed by a designated custodial agency to prevent tampering or loss.

The seized crypto remains in custody while prosecutors or civil authorities prepare a forfeiture complaint, which legally converts ownership from scammers (or unknown holders) to the government.

After forfeiture, the assets may be liquidated, held in reserve, or used as part of broader governmental crypto-asset strategies, depending on policy and case-specific decisions.

Importantly, once wallets are lawfully forfeited, victims whose transactions trace back to those wallets may become eligible to file claims for remission or restitution.

This seizure-and-forfeiture process removes control of fraudulent crypto assets from criminals and preserves the possibility of recovery for victims, but it depends entirely on lawful investigation, proper evidence, and successful legal proceedings.

Petitions for Remission or Restoration

Once cryptocurrency has been seized and formally forfeited by the government, victims may become eligible to file petitions for remission or restoration: the only legitimate legal pathways for individuals to recover stolen crypto.

In a remission process, victims submit detailed claims directly to the U.S. Department of Justice (DOJ), demonstrating how much they lost, how the fraud occurred, and how their transactions connect to the wallets law enforcement seized.

Restoration works similarly but occurs when the DOJ transfers forfeited assets back to a federal court so they can be distributed through a criminal restitution order tied to a specific defendant.

Both processes require victims to provide documentation such as TXIDs, wallet addresses, bank statements, communication logs, and any law-enforcement reports previously filed.

Because the DOJ must verify each claim and ensure the seized assets are truly tied to the victim’s losses, these reviews can take considerable time, often several months to more than a year, depending on the size of the case and the number of victims.

The DOJ’s Money Laundering and Asset Recovery Section (MLARS) oversees the evaluation, and decisions are based on strict federal regulations designed to ensure fairness and prevent fraudulent claims.

Even when petitions are approved, victims may receive only a portion of their losses if the seized amount is smaller than the total victim pool.

While the process can feel slow, remission and restoration represent the most structured and legitimate opportunities for victims to recover funds from large-scale crypto scams.

How Our Crypto Asset Recovery Lawyers Help

Our crypto asset recovery lawyers bring extensive experience to the complex task of evaluating fraud cases and determining whether legitimate recovery options exist.

We help victims understand how their losses fit into the broader enforcement landscape and whether their case aligns with active investigations or government seizure actions.

Instead of making unrealistic promises, our team provides clear explanations of what recovery actually requires under federal law.

We guide clients through the process of preserving evidence, understanding their rights, and avoiding secondary scams that often target victims after the initial loss.

Our role also includes monitoring government filings, enforcement activity, and notices that may signal a potential pathway for restitution.

For victims and families dealing with financial and emotional fallout, we provide stability and direction during an otherwise overwhelming time.

Above all, our goal is to help people make informed decisions based on real legal processes, not speculation or false guarantees.

Evidence Assembly & Loss Calculation

Building a strong recovery claim begins with assembling clear, organized evidence that documents every stage of the fraud.

Victims often don’t realize that small details (timestamps, usernames, or wallet labels) can help investigators link their losses to larger scam operations.

Lawyers help gather, structure, and preserve these details so the evidence is usable in federal remission or restoration processes.

Accurate loss calculation is equally important, requiring precise documentation of how much money was spent, transferred, or lost through fraudulent activity.

This includes both crypto transfers and the fiat purchases used to acquire the digital assets involved.

The stronger and more complete the evidence package, the better positioned a victim is if a government recovery pathway becomes available.

Evidence commonly used for loss calculation and case evaluation includes:

• TXIDs and blockchain transaction records showing transfers to scam wallets.
• Exchange statements documenting crypto purchases, withdrawals, and transfers.
• Bank statements or payment confirmations for fiat-to-crypto transactions.
• Screenshots of fake platforms or dashboards showing balances or blocked withdrawals.
• Message logs with the scammer that establish timelines, instructions, and misrepresentations.
• Email notifications or account alerts from exchanges indicating suspicious activity.
• Any filed reports with IC3, local police, or federal agencies.

Petition Drafting & Submission

For many victims, the emotional and financial shock of losing their crypto makes the recovery process feel overwhelming, especially when they learn that remission and restoration petitions require detailed documentation and technical precision.

These petitions must clearly explain how the fraud occurred, outline each transaction involved, and demonstrate a direct link between the victim’s losses and the wallets the government has seized.

Any missing information, unclear explanation, or inconsistent evidence can delay a claim or prevent it from being considered at all.

Lawyers step in to manage this complex process, organizing the client’s evidence, drafting a clear and accurate petition, and ensuring it meets the strict requirements set by the Department of Justice.

By handling the paperwork, compiling supporting records, and submitting the petition through the proper channels, attorneys relieve victims of the burden of pursuing complicated legal procedures during an already stressful time.

This support allows clients to focus on stability and recovery while knowing their claim is being presented correctly and professionally.

A well-prepared petition not only enhances credibility but also increases the likelihood that the DOJ will accept the loss as valid and eligible for consideration.

Who We Can Meaningfully Help

Our team is able to meaningfully assist victims whose cases align with situations where law enforcement action makes recovery possible.

This typically includes individuals whose stolen crypto can be traced to wallets identified in federal investigations or large scam networks already under scrutiny.

Victims who preserved evidence (such as transaction records, screenshots, and communication logs) are often well-positioned for evaluation.

We can also help those who lost substantial amounts, as these cases are more likely to intersect with major enforcement efforts.

Families supporting a loved one who fell victim to a scam may also benefit from legal guidance, especially when they need help organizing evidence or understanding government notices.

While no attorney can promise recovery, we can determine whether a realistic, lawful pathway exists based on the facts of your case.

We may be able to meaningfully help:

• Individuals who lost large amounts in pig-butchering or romance-investment scams.
• Victims whose transactions match wallets linked to federal seizure or forfeiture actions.
• People who still have access to TXIDs, messages, exchange statements, or platform screenshots.
• Clients whose losses involve fake exchanges or fraudulent investment platforms under investigation.
• Families assisting an elderly or vulnerable relative who was targeted by scammers.
• Victims seeking clarity and protection from secondary recovery scams.

What To Do Right Now If You or a Loved One Have Fallen Victim to a Crypto Scam

The time immediately after discovering a crypto scam is critical, and the actions you take can strengthen or weaken any future recovery options.

Many victims feel ashamed or overwhelmed, but taking clear, deliberate steps now can preserve evidence and prevent further losses.

Even if the scam seems irreversible, documentation and timely reporting may later connect your case to a larger investigation.

These steps are focused on protection, preservation, and creating the groundwork for possible recovery should law enforcement seize the scammer’s wallets in the future.

Steps to Take Immediately:

1. Secure your accounts: Change passwords, enable multi-factor authentication, and lock down email, exchange accounts, and devices to prevent further access.
2. Preserve all evidence: Save TXIDs, wallet addresses, screenshots, platform links, emails, texts, and any communication with the scammer.
3. Report the scam: File with IC3, notify your exchange, and complete a local police report so your loss is officially documented.
4. Stop communicating with the scammer: Any further contact risks manipulation, added financial loss, or exposure to additional scams.
5. Do not send more money: Ignore anyone demanding “taxes,” “fees,” or “unlock charges,” as these are common secondary scam tactics.
6. Consult a cryptocurrency recovery lawyer: An attorney can evaluate the evidence, explain whether your case aligns with active investigations, and help guide your next steps.

TorHoerman Law: Helping Victims in the Cryptocurrency Recovery Process

Cryptocurrency fraud leaves victims facing financial loss, emotional strain, and uncertainty about where to turn, but you do not have to move forward alone.

TorHoerman Law helps individuals and families make sense of what happened, organize their evidence, and understand whether their case may fit into real, lawful recovery pathways.

Our team stays informed about federal investigations, seizure actions, and emerging enforcement efforts so we can give victims clear, grounded guidance, not false hope or unrealistic promises.

Whether you lost money through a fake platform, pig-butchering scam, phishing attack, or wallet compromise, we are here to provide structure, protection, and informed support throughout the recovery process.

If you or a loved one has been affected by a cryptocurrency scam, contact TorHoerman Law today for a free and confidential consultation.

Our attorneys are available 24/7 to review your case, evaluate your evidence, and help you understand what recovery options may exist.