Crypto Victims Targeted Again By Fake Law Firms
Scammers are finding new ways to prey on cryptocurrency investors, this time by impersonating law firms promising to recover lost funds.
The FBI has issued a new warning, highlighting that victims of previous crypto scams are at risk of being defrauded a second time.
These operations exploit the trust of people already stung by losses, often using personal details about prior scams to appear credible.
How Criminals Masquerade As Legal Experts
The FBI reports that fake recovery firms craft convincing legal identities, complete with realistic websites, forged documents, and impersonations of actual lawyers.
Some claim partnerships with fictitious regulatory bodies or even government agencies.
They often ask for payments in cryptocurrency or prepaid gift cards, a red flag since legitimate law firms never request fees this way.
Victims may be directed to fake banking portals and asked to cover supposed “verification” or “bank fees,” further draining their funds.
A Rising Threat With Real-World Consequences
The scale of crypto fraud remains significant.
According to blockchain security company CertiK, around $2.5 billion was lost in hacks, scams, and exploits during the first half of 2025.
While some exchanges manage partial recovery, many investors are left to navigate complex scams alone.
In extreme cases, criminals have resorted to kidnapping or threats to obtain victims’ digital assets.
SatoshiLabs founder Alena Vranova estimates that at least one Bitcoiner worldwide is targeted weekly.
Red Flags To Spot Fraudulent Firms
The FBI outlines several warning signs.
Victims are often approached unexpectedly, asked to transfer funds to third-party entities, or urged to communicate via apps like WhatsApp under the guise of “secure” channels.
Scammers avoid video meetings and resist sharing verifiable credentials.
Genuine legal recovery would involve notarised proof of identity and verifiable bar licensure, not secretive requests for payment in crypto or gift cards.
Seized Crypto Could Build US Stockpile
The FBI and other agencies actively pursue cases involving crypto scams and fraud.
US Treasury Secretary Scott Bessent noted that digital assets seized by authorities may bolster a national crypto or Bitcoin reserve once victims are compensated.
In April, the Dallas FBI seized $2.4 million BTC linked to alleged hackers, with a federal lawsuit filed in July seeking a claim on the funds.
Celebrities And Deepfakes Are Fueling Scams
Fraudsters increasingly exploit the public’s trust in well-known figures.
Images or AI deepfakes of celebrities like Steve Wozniak and Elon Musk have been used to convince victims to hand over crypto.
Reports suggest that in 2024, deepfakes accounted for 40% of high-value crypto fraud, highlighting the sophistication and emotional manipulation behind these crimes.
How To Stay Safe And Protect Assets
The FBI urges victims to adopt a “zero trust” approach: verify credentials, demand notarised proof of legal authority, confirm government affiliations through official channels, and document all communications.
Anyone approached by suspected scammers should report incidents to the Internet Crime Complaint Center at www.ic3.gov and contact their local FBI field office.
The advisory warns,
“Contact with scammers impersonating law firms continues to pose many risks, including the theft of personal data and funds from unsuspecting victims to the reputational harm of actual lawyers being impersonated.”
Crypto Recovery Scams Expose Industry Vulnerabilities
Coinlive sees these evolving fraud schemes as a stark reminder of the crypto market’s vulnerabilities.
Even sophisticated investors can be drawn into elaborate scams once their guard is down, raising questions about how the industry protects user funds and maintains trust.
With high-profile bankruptcies leaving customers in limbo, the effectiveness of recovery mechanisms and oversight remains uncertain.
Can the market survive this cycle of deception without stronger safeguards, or will opportunistic criminals continue to exploit every gap in protection?
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