What To Know If You Lost Crypto in a Scam or Hack
Did you have cryptocurrency stolen as a result of a scam or hack? You need to act fast to protect your rights. You may be able to recover some or all of your losses by filing a cryptocurrency lawsuit. However, proving your case can be challenging without the help of an experienced lawyer.
At Dimond Kaplan & Rothstein, P.A., we work with individuals who have sustained bitcoin and other crypto losses due to wrongdoing. Our lawyers are well-versed in holding negligent parties accountable for their wrongdoing. We are experienced crypto theft attorneys who will not rest until you get the best possible outcome in your case. Contact our office today to schedule a free, no-obligation consultation.
Understanding Your Rights After Cryptocurrency Theft
With the rise in the number of people investing in digital assets, there has been a sharp increase in cryptocurrency theft. Unfortunately, crypto accounts are not backed by a government, making it more challenging to recover losses after theft. Many times, cryptocurrency payments are not legally protected and are irreversible.
If you are the victim of a scam or fraud, you may be able to take legal action. It can be challenging, however, without the assistance of a qualified lawyer. Our respected attorneys will work hard to protect your rights, including your right to compensation. We will hold all negligent parties accountable for their wrongdoing.
In some cases, bad actors may have gained access to your account through a cybersecurity failure or another type of data breach. In these instances, the crypto exchange, crypto wallet provider, or phone carrier may be liable for resulting damages.
What to Do First If Your Digital Assets Are Stolen
It is strongly recommended that you report the crypto theft immediately to the appropriate authorities. You should not only report the crime to the exchange where your information or assets were stolen, but you should also file a claim with investigative agencies.
Agencies where you can report crypto theft:
- Internet Crime Complaint Center (IC3)
- Federal Bureau of Investigation (FBI) field office
- Federal Trade Commission (FTC)
- Commodity Futures Trading Commission (CFTC)
- U.S. Securities and Exchange Commission (SEC)
In addition to filing a report with these agencies, you should also consider contacting an attorney. An attorney can help determine whether you have a valid legal claim and how to recover your crypto losses.
Common Crypto-Related Scams
Cryptocurrency scams can take a number of forms. They are not limited to security failures or third-party hacks. They may also involve investors offering opportunities that are too good to be true or bad actors impersonating legitimate businesses and agencies.
Common scams that may result in crypto losses:
- Phishing scams: Phishing scams may involve a fake crypto site or an email asking you to enter your crypto wallet credentials.
- Fraudulent investments: Many crypto scams involve bad investment schemes. They usually promise unusually high returns and make guarantees.
- Romance-related scams: Some intricate schemes involve a fake love interest that encourages a person to invest in a certain type of cryptocurrency or digital asset, such as non-fungible tokens.
- Free giveaways: Another common scam occurs when an “influencer” or self-proclaimed financial expert offers a free giveaway through their social media account. The giveaway may be to an asset with no value or a bad investment.
- Ponzi schemes: As with other types of investments, cryptocurrency is not immune from Ponzi schemes. Ponzi schemes occur when existing investors are paid by new investors instead of returns on the actual investment. They often promise little or no risk while guaranteeing significant returns.
Protecting your information often proves essential to avoiding losses. You should never give out your personal information, particularly regarding your financial accounts and your digital wallet. Be wary of any unusual texts or emails that claim to need crypto payment or ask for your credentials. Hackers have become adept at appearing legitimate, so scams can be more difficult to detect than ever. If you do suffer losses, you may want to consider filing a cryptocurrency theft lawsuit.
What to Know About Filing a Cryptocurrency Lawsuit
If you are considering filing a lawsuit after crypto theft, you should consult with an attorney as early in the process as possible. A lawyer can help you navigate the legal proceedings and ensure the fraud is reported to the appropriate authorities. Many times, there are many victims in a single crypto theft, which means that you may be helping others by reporting the crime.
Protecting Your Digital Wallet
There are several steps that you can take to protect your digital wallet. Foremost, ensure that your passwords are strengthened and always enable multi-factor authentication. Do not click on links that seem suspicious. If an offer seems too good to be true or makes promises of high returns with little risk, it is probably a fraudulent scheme. Speak with your financial advisor before making any transactions.
While transactions on the blockchain are secure, they are also irreversible. Before buying or selling cryptocurrency, ensure that you have the right information. Always use secure networks, and be sure to be on guard when anything seems suspicious. Cryptocurrency is still in its infancy, and hackers are taking advantage of any vulnerabilities that exist.
Did You Suffer Crypto Theft?
If you suffered crypto theft, contact Dimond Kaplan & Rothstein, P.A. to schedule a free consultation. Our legal team can help determine the best course of action based on the individual circumstances of your case. We have extensive experience helping victims of cybersecurity breaches, scams, and other frauds recover cryptocurrency losses nationwide. Contact us today to get started.
There are never any fees unless money is recovered on your behalf. Do not wait. Reporting crypto theft is often critical to ensuring you recover some or all of your losses. It can be challenging to hold parties accountable for crypto losses, so you will need to act quickly to get the outcome you deserve. Cryptocurrency losses could be in the billions of dollars by the end of the year. Help us ensure that these bad actors are stopped.
