Recovering stolen crypto: what is realistic and what is not

Is recovering stolen crypto realistic?

Sometimes. A blockchain is public, so the route of your funds can usually be followed. But an address is not a name, and a transaction cannot simply be reversed. Recovery is only possible if the funds ended up somewhere a competent authority or firm can act.

So the first question is not “will I get it back?” but “where is it now?”. The answer decides which of the five scenarios below you are in. Paucitas finds that out for you.

Which five scenarios come up in practice?

1. The funds are at an exchange that identifies its customers. This is the most promising scenario. The cash-out point is then an exchange that knows which customer belongs to the deposit address. The police can request information there.
2. The funds are still at an address controlled by the thief. The route is visible, but there is no firm yet that can freeze anything. As soon as the funds move to a service provider, a lead can still appear.
3. The funds went to a party outside Europe. The route can often still be established. Follow-up takes longer and depends on cooperation with that country.
4. The funds were obscured through a mixer or many intermediate addresses. The route can then often be followed up to a certain point. The report records how far it is established.
5. Someone has contacted you promising to get everything back. That is not an opportunity but a risk. See below.

You cannot always tell for yourself which scenario applies. Sometimes the trail seems to go cold, while a few steps further on it does reach an exchange. And sometimes the money turns out not to have been stolen at all, but is still at an address you control yourself.

Want to know which scenario you are in? Let Paucitas take a look with you. You can ring any time, 24/7, on +31 20 244 5774.

Who can help with recovering stolen crypto?

Paucitas starts with the facts. We follow the route of your funds from the moment of the theft to the point where they reach a service provider. Paucitas does all the tracing itself, without tracing tools, and also reads through all the conversations, documents, emails and other communication. That gives you the full picture, with a timeline and where all the money went. We link every step to a transaction hash, so anyone can check it.

That often achieves more than people expect. Sometimes we map out where the money is now. Sometimes it turns out you can regain access to your own wallet. And sometimes it turns out to be a mistake or a mix-up rather than theft.

What can you do with the Paucitas report? It shows whether money is still available or where it went, and what the next steps are. In a case of theft or fraud, one of those steps is reporting it to Report Fraud, or to Police Scotland if you live in Scotland, and the report is then a strong attachment that sets everything out fully and clearly. Your solicitor can work with it too. Also read securing evidence after a crypto theft.

How do you spot a recovery scam?

A party that promises you will get everything back in return for an upfront payment is often a scam in practice, a so-called recovery scam. These offers target people who have already lost money. Watch out for these signs:

• a promise that you will definitely get your money back;
• an upfront fee, often a percentage of the amount supposedly coming back;
• a request for your recovery phrase, private key or access to your wallet;
• contact you did not seek out yourself.

The FCA warns about recovery room scams too. Unsure about an offer? Feel free to ring us first. Paucitas never asks for your recovery phrase and does not promise that money will come back. More on this in scammed twice with crypto.

What does an investigation cost and how quickly will you know more?

The report shows which route your funds took, how far that route is established and which party they reached. It is written so that anyone can follow and understand it step by step, including the police and your solicitor.

• Cost: every investigation is tailored. You receive a tailored quote in advance that we go through together, with no surprises.
• Turnaround: from the same day to around two weeks.
• Availability: you can ring any time, 24/7. Via the form you will hear from us within 1 to 3 hours, by email within 24 hours, usually the same day.

Further reading: tracing stolen crypto to an exchange, a case study on stolen bitcoin and frequently asked questions on stolen crypto recovery.

Want to know what is possible in your situation? Get in touch for a free intake, or ring +31 20 244 5774. Then you will soon know where you stand.

Sources: Report Fraud; Police Scotland, scams and frauds; FCA, recovery room scams.