Crypto Recovery Scam
A secondary fraud targeting people who have already lost cryptocurrency, offering to recover their funds in exchange for upfront fees, then stealing those too.
Also known as: fund recovery scam, crypto rescue scam, recovery fraud
Last reviewed: 10 June 2026
Crypto recovery scams prey on victims of prior cryptocurrency fraud who are desperate to recoup losses. Fraudsters advertise on social media, forums, and search engines as 'crypto recovery experts' or 'blockchain investigators,' claiming to have the ability to trace and recover stolen cryptocurrency. They charge a series of escalating fees for investigations, legal processes, and transaction 'unlocking.'
In reality, true crypto recovery is technically impossible in most cases: transactions are irreversible by design and on-chain funds controlled by anonymous attackers cannot be forcibly returned by a third party without law-enforcement and judicial cooperation across jurisdictions. The 'recovery' service is itself a scam, collecting fees while providing fabricated investigation reports.
Legitimate avenues after crypto theft include reporting to national financial regulators, cybercrime units, and licensed legal professionals who work on contingency. Any service demanding upfront payment to recover lost cryptocurrency should be treated as fraudulent.
Examples
- A victim of an investment scam is contacted by someone claiming to be a 'blockchain forensics specialist' who charges multiple upfront fees before disappearing.