The U.S. Federal Bureau of Investigation (FBI) has updated its alert for victims of cryptocurrency scams regarding fraudulent law firms that claim to recover stolen digital assets. The bureau warns the public about the risks associated with these solicitations.
Identifying Fraudulent Law Firms
In a public service announcement, the FBI noted that these fraudulent firms often target individuals who have already lost money to previous scams. The bureau advises avoiding contact with such outfits, especially if they request payment in cryptocurrency or prepaid gift cards. The FBI stated, 'Be cautious of law firms contacting you unexpectedly.'
Statistics on Crypto Losses
According to blockchain security firm CertiK, $2.5 billion was lost to hacks, exploits, and scams in the first half of 2025. While some exchanges have managed to return funds, many victims remain without recourse and become targets for recovery scams.
Issues with Crypto ATMs
The Financial Crimes Enforcement Network (FinCEN) reported a surge in the number of crypto ATMs in the U.S., which has coincided with an increase in non-compliant operators. Many are failing to register as money services businesses, a legal requirement. In 2022, the FBI's Internet Crime Complaint Center received nearly 11,000 reports involving crypto ATMs, with losses totaling nearly $247 million.
The escalating situation in the cryptocurrency market necessitates heightened awareness of fraudulent schemes. The FBI and other governmental bodies continue to work on consumer protection and minimizing risks for investors.
