FBI warns private companies not to issue seizure orders to retrieve cryptocurrency, investors should beware of secondary scams

The Federal Bureau of Investigation (FBI) has warned that the number of companies impersonating entities claiming to be able to recover losses from cryptocurrency scams has increased. These companies falsely advertise that they can help victims of cryptocurrency investment fraud recover or reclaim lost assets. In reality, they are engaging in secondary scams, and the public should exercise extreme caution.

According to the FBI's Internet Crime Complaint Center (IC3), victims of cryptocurrency investment scams reported to the FBI have lost over $2.5 billion in 2022.

After falling victim to investment scams, many individuals may encounter fraudulent companies claiming to provide cryptocurrency tracking services and promising to recover lost funds. These scammers may contact victims through social media or messaging platforms, place advertisements in cryptocurrency-related articles or videos, or try to appear on search engines or social media to attract these victims.

Typically, these scammers will request upfront payments, then cease contact with the victim after receiving the payment, or provide incomplete or inaccurate tracking reports and demand additional fees to recover the funds. They may claim to have connections with law enforcement or legal services to showcase their legitimacy.

The FBI warns:

Private companies cannot issue seizure orders to recover cryptocurrency, and cryptocurrency exchanges can only freeze accounts based on internal processes or following relevant legal procedures. Therefore, the public should maintain a high level of suspicion towards those claiming to recover assets.

The FBI also advises the public not to share any personal or financial details online with others. Fraud victims should report the incident to the IC3 law enforcement department. They can also file civil lawsuits to recover lost assets, so preserving all records, transaction details, and interactions with suspicious individuals is crucial. However, these companies often operate under aliases, making it highly likely that lawsuits cannot be filed against such cases in court.

Previously, the FBI also released a document showing that they seized nearly $1.7 million worth of cryptocurrency between March and July, demonstrating that only law enforcement agencies have the authority to seize or recover cryptocurrency assets.