Fraud can affect anyone, and the cryptocurrency market is no exception. This gray market is expanding daily, and even experienced crypto investors or traders sometimes fall victim to fraudsters. If you have transferred your assets to a fraudulent project or encountered a dishonest crypto service, such as a cryptocurrency wallet, it is crucial to take immediate action to recover your funds. The lawyers at Asset Recovery have many years of experience in such cases—over 12 years, we have been helping clients recover their funds. Reach out to us, and we will do everything possible to recover your cryptocurrency.
Recovering Funds from Cryptocurrency Scams
10 October
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How to Recover Money Transferred to a Fraudulent Cryptocurrency Wallet?
Situations involving cryptocurrency fraud can vary widely. For example, you might have invested in a project that initially appeared promising. You transferred funds to a crypto wallet, and then the broker suddenly disappeared and stopped responding to your inquiries. Or you paid for a service with cryptocurrency, only for the service provider to vanish along with your money.
Cryptocurrency transactions are known for their lack of protection, but that does not mean recovering your assets is impossible. Let’s review the steps you can take in such a situation.
Cryptocurrency Chargeback: What Is It and How Does It Work?
A chargeback is a process of reversing a payment, and it is the simplest way to recover funds sent to fraudsters.
Important: A cryptocurrency chargeback is possible if you made the transfer using a bank card or through a payment system. In cases where other methods were used, such as online payments, recovery is only possible by contacting law enforcement agencies. Get a consultation from our lawyers regarding the recovery process.
Chargeback can also help recover funds if you accidentally transferred them to the wrong person.
Steps to Recover Cryptocurrency
The chargeback process includes the following steps:
Filing a claim with the bank: You will need to attach evidence of fraud to your claim, such as screenshots of conversations, links, receipts, contracts, and more.
Awaiting a decision: The time required for claim review depends on your bank and the specifics of the case.
Refund of funds: After the claim is approved, the bank returns the stolen funds to your account.
If the fraudster has not completely disappeared, it might be possible to resolve the issue out of court by sending a notice of contract termination and a demand for a refund.
How Chargeback Helps Protect Your Money
A chargeback cannot prevent fraud, but it can help recover funds in the following situations:
Receiving a refund for goods you never received or services that were not provided.
Recovering funds stolen through account hacking.
Refunding money sent to fraudulent brokers.
The key factor is proving the fraud.
Common Cryptocurrency Fraud Schemes
Cryptocurrency is a favorite tool of fraudsters, and they use many schemes to steal money:
Selling non-existent goods: You pay for a product through a crypto wallet, but the seller disappears.
Account hacking: A message from a friend asking to borrow money? Often, this turns out to be fraud.
Crypto investments: Scammers promise high returns, encouraging you to invest more and more money.
Mining equipment rental: Some services offer the rental of mining farms, but there are fraudulent ones among them.
Why Seek Professional Help?
The chargeback process can be challenging for regular users. That’s why it’s better to consult specialists:
Banks often reject claims: They frequently look for reasons to deny claims, citing mistakes in the application or lack of evidence. Our lawyers will help you avoid these difficulties.
Save time and reduce stress: You won’t have to study procedures yourself or worry about the nuances of the process.
Flexible payment system: Our main fees are charged only after the refund is approved.
Frequently Asked Questions
What situations can justify a chargeback on crypto exchanges?
Any illegal activities—fund theft, fraud, transfers from a hacked account, and other violations.
How do I start the process of recovering crypto assets?
The process begins with submitting a claim to the bank. It’s best to consult lawyers who can help gather all necessary evidence and correctly prepare the claim.
How long does a chargeback take?
Typically, the process takes up to 60 days, after which the bank makes a decision.
What are the chances of recovering funds lost to a fraudulent crypto wallet?
Working with our lawyers significantly increases your chances of a successful recovery. We will assist you with the claim, evidence, and offer a plan of action in case of a denial.
Our company’s specialists will help draft a well-prepared claim and an action plan to ensure your bank accepts the request.
