How to Report Crypto Scams and Recover Funds in 2025

Scammers are constantly looking for new ways to make money, and the rapid rise of cryptocurrency in recent years has opened the door to new opportunities for fraud. Crypto scams often involve tricking people into buying or sending digital currency through deceptive tactics like fake investment platforms, phishing, and false promises of high returns. In 2024, crypto scams led to $9.3 billion in losses — a 66% increase from the previous year.^[1]

Falling victim to a crypto scam can be devastating, leaving you feeling helpless, angry, and betrayed. While recovering funds is challenging due to the decentralized and irreversible nature of crypto transactions, you’re not necessarily out of options. Below, we outline key steps to consider in order to report the crime, help limit further losses, and support investigations that could potentially lead to restitution.

The Reality of Crypto Scam Recovery

Crypto scam recovery refers to the process of reporting fraudulent activity, protecting your remaining assets, and assisting law enforcement in tracking stolen funds. However, recovery doesn’t usually mean getting your money back immediately — or sometimes, at all.

Cryptocurrency transactions do not come with the same legal protections provided to credit or debit card payments and are typically irreversible. While crypto transactions are permanently recorded on publicly available ledgers called blockchains, U.S. law enforcement can run into difficulty tracing payments to overseas exchanges, especially in countries with lax anti-money laundering laws and regulations.

That said, recovery isn’t impossible. There have been cases where funds have been traced, frozen, and returned to victims of crypto scams. While these outcomes are rare, reporting a crypto scam is generally worth the effort, especially since it can help prevent others from being victimized.

Steps to Take After a Crypto Scam

If you believe you’ve been scammed, it’s important to take quick action. This may help to limit further damage and support a stronger case when making a report. Here are key steps involved in crypto scam recovery:

1. Stop All Transactions Immediately

If you suspect a scam, do not send additional funds. While this might sound obvious, fraudsters often tell victims they must pay “fees” or “taxes” to access their principal or profits. This is part of the scheme, however. Legitimate brokers, crypto exchanges, or other crypto service providers should never demand extra payments to release your funds.

2. Protect Your Accounts

Change passwords on your crypto exchange, email, and any financial accounts connected to your crypto wallet. Enable two-factor authentication (2FA) to help reduce the risk of further compromise. If you provided personal information such as your Social Security number, contact the major credit bureaus (Equifax®, Experian®, and TransUnion®) to place a fraud alert or security freeze on your credit file. This helps prevent scammers from opening new accounts in your name.

3. Collect All Relevant Information and Documents

Write down everything you remember about the scam while it’s still fresh in your mind. Also gather as much documentation you can related to the incident, including:

•   Names and titles used by the scammers

•   Phone numbers, emails, and messaging accounts used to contact you

•   Screenshots of conversations or websites

•   Exchange account details, wallet addresses, and transaction IDs

•   Dates, times, and amounts of cryptocurrency sent

•   Any payment receipts or confirmation statements

4. Report the Scam to Relevant Authorities

File reports with federal and local agencies as soon as possible. Each report helps build larger cases against fraudulent operations and improves tracking (see below for details on which agencies to contact and how). It’s also a good idea to report the scam to the crypto exchange you used to send the money. The company may be able to place more security on your account and freeze or ban the scammer’s account, potentially protecting others.^[2]

5. Explore Options for Financial Recovery

Review your homeowner’s insurance policy to see if there is any coverage for fraud-related losses or identity theft. You might also consult a tax professional to see if your losses qualify for a deduction. If the loss has caused major financial hardship or significant debt, consider contacting a reputable financial planner or a nonprofit credit-counseling agency for help rebuilding your finances.

Where and How to Report a Crypto Scam

Below are the main U.S. agencies and authorities that accept reports of cryptocurrency fraud and related crimes.

Federal Trade Commission (FTC)

The FTC handles reports of consumer fraud, deceptive advertising, and investment scams, including those involving cryptocurrencies. You can report a scam at ReportFraud.ftc.gov. The FTC uses these reports to spot patterns, build cases, and issue consumer alerts.

Securities and Exchange Commission (SEC)

The SEC oversees securities-related investments and can investigate crypto projects that illegally sell unregistered securities or mislead investors. You can file a complaint using the SEC’s online form or call the SEC’s Office of Investor Education and Advocacy at 1-800-732-0330 for guidance.^[3]

Commodity Futures Trading Commission (CFTC)

The CFTC regulates the country’s derivatives markets, including futures, options, swaps, and some digital assets. You can report a crypto scam at CFTC.gov or by calling 866-FON-CFTC (866-366-2382).^[4]

FBI Internet Crime Complaint Center (IC3)

The FBI’s Internet Crime Complaint Center (IC3) is a key federal hub for reporting cyber-related crimes, including crypto scams, hacking, and online extortion. You can report a cryptocurrency at ic3.gov. But do not inform the suspected scammers, as this could compromise the investigation.

Local Law Enforcement

Even if the scam took place online or involved international parties, it’s still a good idea to report it to your local police department.

While local police may not be able to trace international wallets, your report will become part of an official database. When a scam receives multiple reports, the police may escalate the case, either by launching a more thorough inquiry or by passing it to a different agency. You may also need to have a copy of a police report if you plan to file an insurance claim for fraud losses.

Beware of Crypto Scam Recovery Services

After losing crypto, victims are often targeted again by fake “recovery experts,” effectively adding insult to injury. These scammers often claim they can retrieve lost funds in exchange for upfront fees or “processing costs.” They may operate legitimate-looking websites complete with glowing testimonials and impressive recovery rates.

Unfortunately, these operations are almost always scams. No private individual or company can guarantee the recovery of lost crypto. Even if a recovery company is legitimate, it does not have the same authority as law enforcement agencies to compel the freezing or seizure of cryptocurrency assets. Generally, the safest path is to work only with official regulators or law enforcement, not private firms promising immediate results.

How to Spot a Crypto Scammer

Recognizing scam patterns can help prevent losses before they occur. Many crypto schemes share common warning signs:

•   Guaranteed returns: Crypto scammers often lure victims by offering sky-high and risk-free profits. But there are no guarantees in the world of buying and selling digital assets.

•   Lack of transparency: Vague statements and secrecy about a crypto opportunity may be a sign of a scam. A legitimate crypto project will provide detailed information about their team, technology, and plan.

•   Upfront crypto payment: A real company will not ask you to make an advance crypto payment to purchase something or protect your funds.

•   High-pressure tactics: Scammers will often create a sense of urgency by claiming an exclusive opportunity or limited availability. A reputable project will let you make educated decisions without feeling rushed.

•   Celebrity endorsements: Scammers often use fake endorsements or AI-generated deepfakes of celebrities to lure people into fraudulent schemes. While not every crypto endorsement is a scam, consumers should be highly skeptical.

•   Romantic involvement: If someone you meet online wants to show you how to invest in crypto or asks you to send them coins, it may be a scam.

What Evidence Do You Need Before Reporting a Scam?

Accurate and detailed evidence strengthens your report and may help increase the chance that authorities can investigate. Before filing a complaint, you typically need to gather the following evidence:

•   Copies of communications with the scammer (e.g., emails, text, DMs)

•   All identifying information you have, such as names, e-mail addresses, and phone numbers

•   Domain names, website addresses, or apps the scammer instructed you to use

•   Any two-factor authentication or “one time passcode” information

•   Which cryptocurrency exchanges you used to send or receive funds

•   Transaction details (including wallet addresses, amount and type of crypto, date and time, and transaction ID)

•   The timeline of the scam

The Takeaway

Becoming a victim of a crypto scam can be painful, but it doesn’t mean you’re powerless. The key is to respond quickly. Important steps to recovery may include securing your accounts, documenting every detail, and reporting the incident to trusted authorities. Acting fast not only may help protect you, but may also help others avoid similar traps.

As crypto continues to evolve in 2025, scammers are getting smarter, but so are the tools and agencies working to stop them. By staying cautious, informed, and proactive, you can help protect your assets and contribute to a safer digital financial future for everyone.

Soon, SoFi members will be able to buy, sell, and hold cryptocurrencies, such as Bitcoin, Ethereum, and more, and manage them all seamlessly alongside their other finances. This, however, is just the first of an expanding list of crypto services SoFi aims to provide, giving members more control and more ways to manage their money.

Join the waitlist now, and be the first to know when crypto is available.

FAQ

Where is the best place to report a crypto scam?

The best place to report a crypto scam depends on the type of fraud. You may want to start with the Federal Trade Commission (FTC) at reportfraud.ftc.gov. If the scam involved buying, selling, or moving crypto, also report it to the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), and the FBI’s Internet Crime Complaint Center (IC3). It may also be a good idea to contact your crypto exchange to alert them of suspicious activity.

Can the police help with a crypto scam?

Yes, the police can help, especially if you’ve lost money or personal data. While local law enforcement may not be able to recover your funds, they can document your case, provide an official report, and forward it to state or federal cybercrime units.

How do I report a scam to the FBI’s Internet Crime Complaint Center (IC3)?

To report a crypto scam to the FBI’s Internet Crime Complaint Center (IC3), visit ic3.gov. Fill out the online complaint form with detailed information about the scam, including transaction records, wallet addresses, emails, and communication logs. Be as specific as possible — the FBI uses this data to identify patterns and link related cases. After submission, you’ll receive a complaint ID for tracking. While IC3 may not contact you directly, your report helps ongoing investigations and public protection efforts.

Are crypto recovery services real or just another scam?

Most so-called “crypto recovery services” are unfortunately scams themselves. Fraudsters often pose as recovery specialists or investigators who promise to retrieve stolen funds — for a hefty upfront fee or by stealing more information. It’s generally safer to report your loss to the government agencies, local law enforcement, and your crypto platform, rather than using third-party recovery firms.

What evidence do I need to gather before reporting a scam?

Before reporting a crypto scam, gather all possible evidence to support your claim. This includes transaction IDs, wallet addresses, screenshots of messages or emails, payment confirmations, and links to the scam website or social media profiles. Save any identifiable information about the scammer, such as usernames or email addresses. Organizing these details will help authorities conduct a more effective investigation.

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About the author

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Article Sources

1. FBI. FBI Internet Crime Report 2024.
2. Blockchain Council. Top 5 Ways To Recover Funds From Crypto Scam in 2025.
3. U.S. Securities and Exchange Commission. Cyber, Crypto Assets and Emerging Technology.
4. Commodity Futures Trading Commission. Digital Assets.

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Photo credit: iStock/Andrii Yalanskyi

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