How to Retrieve Stolen Bitcoin & Cryptocurrency

Since early 2017, law enforcement authorities were frightened by the kind of interest the public was showing towards digital currencies.

Their main concern was about the anonymity aspect and as governments around the world never had any specific rules regarding this form of payment, there was a lot of confusion.

Moreover, a lot of ponzi schemes, high profile thefts and other shocking incidents caught the attention of the authorities and needless to say, they had a hard time dealing with it.

Eventually, as time passed, forensic tools were developed and now, many virtual coins and tokens are easy to track. Many people still believe that by employing Bitcoin mixers and tumblers, one might get away without being traced.

However, that is not the case and thanks to current technology, the odds of criminals escaping without consequences are going down exponentially.

Stolen or lost cryptocurrencies and bitcoins can easily be recovered. If you are a geek, then you might be able to accomplish the task or tracing all by yourself.

On the flip side, if you want to force law enforcement authorities to take swift action and recover the stolen funds quickly, then without doubt, you will need professional help.

After all, you just cannot accomplish everything using free tools and for a few specific cases, it is always better to let experts do your bidding.

Are Cryptocurrencies Truly Anonymous?

In 2013, Bitcoin was marketed to the public as a new form of payment that was truly anonymous. In simple words, a lot of people were misinformed about the way this coin works and the majority of the public thought everything they do using this coin was impossible to track or trace.

People at the top who really understood the power of cryptos got in for the long term. Hodlers focus on the potential of decentralization and other practical uses and they never had an ill intent.

The main thing everyone needs to understand about cryptocurrencies is that it embraces decentralization, but all the transactions are transparent and anyone can see the flow of funds using basic tools.

To put things into perspective, apart from a few altcoins, most of the virtual currencies can be tracked and the owners can be caught.

In fact, tracing cryptocurrencies can be faster than tracing wire transfers with the right software and expertise.

What is the process used by Crypto Investigators?

Recovery agencies and crypto forensic experts use a lot of proprietary tools to trace the culprits. Most firms never reveal their exact technique for obvious reasons.

Nonetheless, the process they use at large is quite apparent and it contains a lot of steps that are similar to traditional ways of investigating.

First and foremost, it all starts with identifying start and end points. The moment someone buys digital currencies, they have to put in their confidential information on the exchanges or on other mediums.

At the end, while cashing out, people have to leave a trail which contains their address and the mechanisms used by them to turn their coins into fiat currencies.

Flow of funds can be traced by anyone that has a reasonable amount of knowledge in this space.

However, gathering intelligence and evidence that is accepted in the court is something only professionals can do.

Not to mention, the proprietary tools are never within the grasp of the public and that kind of tools are almost impossible to get tricked by any kind of gimmicks.

Can Cryptocurrencies be Traced?

At the height of the 2017 bull run, a lot of criminals were using mixers and tumblers on the deep web to cover their tracks.

At that time, it was hard for the authorities to intervene and stop them from fleeing the scene.

Bitcoin mixers operate in a manner wherein it makes it hard to trace the flow of funds.

Nonetheless, it doesn’t necessarily mean that the criminals will get a gate pass. In the initial days, tumblers and mixers were a concern, but all the latest forensic tools can see through the data and can accurately paint the picture of the transactions.

CNC Intelligence traces over 200,000 coins and tokens and typically, traces can be done within a number of weeks.

Now, as we have clearly depicted that cryptocurrencies can be traced, let us address the popular question on the internet which is – “How to retrieve stolen Bitcoin?”

The answer to this question along with other aspects are discussed thoroughly in the following section.

How to retrieve Stolen Bitcoin?

Criminals are exploiting the lack of regulation in this space and according to many studies, more than 10 million dollars per day is lost to crypto scams worldwide. Clearly, this problem is growing at a phenomenal speed and it needs to be brought under control.

As the location or other geographical location does not play a role in the transfer of funds, crooks prefer this payment method. The first step to recover money from any kind of scam is to find the address which was used by the scammers.

Once the data is found, using on-chain metrics all the other information can be gathered and once the culprit decides to change the coins to fiat currencies, he or she will leave a paper trial that can be used to take legal action against them.

Almost all the reputable exchanges readily comply with recovery agencies and once a court order is submitted, the exchanges will pass the KYC information of the required client.

If the culprit resides in a different country, then there are other legal things to take care of which may be difficult for people to carry out on their own.

Note that, the evidence gathered must be strong and convincing enough for the court or else, the matter will not be taken seriously.

For best results, it is always wise to hire a recovery agency such as CNC Intelligence and let the experienced team do your bidding.

Navigating through legal formalities does cost more if you are pursuing it individually and sometimes, the results might be too slow. So, think about the process thoroughly and then take a firm call.

Different Types of Crypto Scams

As the crypto space continues to grow higher, it will attract a lot of newbies. Unfortunately, people entering this sector won’t have enough knowledge about the way things work and they are the ones vulnerable to cyber scams.

Over the years, a lot of crooks have used certain narratives to loot the public, though the idea behind the traps change from time to time, the pattern still remains the same.

Take a look at the following style of hustles below. If you notice the traits explained in the section below, then immediately notify the concerned authorities and your local cyber security units.

Giveaways

Many crypto influencers often announce giveaways to rejoice certain milestones or events. As always, numerous people take part in them and the lucky ones will walk away with the prize.

Scammers create fake giveaways which in reality are phishing pages, they ask for personal details and sometimes they have the audacity to ask for fees. Anyone that inputs the details without verifying the source will lose a lot more than just money.

So, always remember to verify the source and if anyone asks way too many questions, then it is time to re-evaluate your decision about them.

Doublers

On the internet, a lot of fraudulent investment portals are claiming to double your cryptocurrencies. You might have seen offers which promise to yield you returns of over 100% in less than 24 hours.

Without doubts, the offers are enticing, but bear in mind that it is nothing more than a hustle.

No legitimate business will make claims like that and since the blockchain transactions cannot be reversed, scammers use this tactic to make money by fooling the gullible investors.

More experienced crooks might create a narrative or convincing story to enhance their credibility, but if the transparency and operational model do not agree with the operational model, it will never end well for the users.

Too good to be true Investment opportunities

Ponzi schemes nowadays are starting to use a lot of cryptocurrency related stories in their narratives. As many people believe in cryptos, it will be easier for the crooks to take advantage of their blind faith and enthusiasm.

If you encounter any platform that does not offer solid evidence to support their claims yet they exaggerate about the returns, then most likely you are looking at a ponzi scam.

The worst thing about schemes like this is that they even pay a few clients in the beginning to get the momentum going. However, as time moves on, they will flee and it is just a matter of weeks from their inception.

As this kind of scheme is devastating for a lot of people, governments in most countries have banned this kind of operation.

Advance Fee schemes

Because cryptocurrency is perceived to be so difficult to trace, there are scammers who defraud people by offering a product or a service for sale in exchange for cryptocurrencies.

Once the client makes the payment, the seller will disappear.

Cloud Mining schemes

Cloud mining in the early days was a legit opportunity wherein anyone could easily create a cash flow for themselves by investing in the mining farms.

Now, the scenario is different and for the retail side, it is hard to gain an edge due to the rising cost and maintenance charges.

There are few legitimate cloud mining solutions, but even those won’t give you a double digit return monthly.

On the other hand, you can find tons of platforms that claim to double or triple your money on an annual basis.

Unfortunately, the claims are all false and these kinds of websites have only one intention which is to flee away with your money.

Clearly, mining space is not for retail investors anymore and anyone that does not agree with the statement may not have your best interest in mind.

So, always pay attention to the profits promised and if it is way above the industry’s average, then it is likely to be a trap.