§ — Crypto scams · Six types · Recovery odds

How crypto actually gets stolen — and which of these can realistically be recovered.

StarCompliance — STAR COMPLIANCE CYBER RISK MANAGEMENT SERVICES L.L.C, Dubai commercial licence No. 1135542 — has closed 117+ cases since 2022 across 12 jurisdictions. This page describes the six ways money is taken in this sector, how the funds move in each, and, for each one, whether recovery is realistic. That last part is where we differ from most pages you will read today: for some of these, the honest answer is usually not, and we would rather tell you that here than sell you a case.
Last updated: 1 August 2026Figures as of: 30 July 2026First response: within 2 business hours
Recoverability index6 types
Type 01
Rug pull
Hardest
Type 02
Romance / investment
Moderate
Type 03
Wallet drainer
Moderate
Type 04
Fake exchange
Moderate
Type 05
SIM swap
Best odds
Type 06
Address manipulation
Varies sharply
■ EVERY HOUR INCREASES THE RISK OF FUND MOVEMENT · ■ RESPONSE TIME < 2 HOURS · ■ $500M+ TRACED IN 2025 · ■ 68% SUCCESS RATE ON ACCEPTED CASES · MEASURED OVER THE PAST 24 MONTHS · ■ 12 JURISDICTIONS · ■ 24/7 INTAKE · ■ EVERY HOUR INCREASES THE RISK OF FUND MOVEMENT · ■ RESPONSE TIME < 2 HOURS · ■ $500M+ TRACED IN 2025 · ■ 68% SUCCESS RATE ON ACCEPTED CASES · MEASURED OVER THE PAST 24 MONTHS · ■ 12 JURISDICTIONS · ■ 24/7 INTAKE · ■ EVERY HOUR INCREASES THE RISK OF FUND MOVEMENT · ■ RESPONSE TIME < 2 HOURS · ■ $500M+ TRACED IN 2025 · ■ 68% SUCCESS RATE ON ACCEPTED CASES · MEASURED OVER THE PAST 24 MONTHS · ■ 12 JURISDICTIONS · ■ 24/7 INTAKE ·
§ 01 — What decides it

What actually decides whether money comes back.

People ask which scam they fell for. It is the wrong question. Recovery depends on where the money went afterwards, and there are only three things that really matter:

Did the funds reach a centralised exchange — and are they still there?

An exchange has an operator, a compliance team and an account holder behind the address. There is somebody to ask to stop the funds, and somebody a court can order to return them. Funds that stayed on-chain — swapped on a decentralised exchange, bridged between networks, pushed through a mixer — have no such party.

This single factor outweighs everything else

How fast was it reported?

Stolen crypto is only worth something once it becomes ordinary money, which means passing through somewhere that screens deposits. We flag stolen transactions to AML providers within four hours of intake, so the marker is waiting when the funds arrive. After cash-out and withdrawal there is nothing left to freeze.

Flagging within 4 hours · freeze request to an exchange 2–4 days

Is the chain traceable?

Ethereum, Bitcoin, Tron, BSC, Polygon and Solana record every movement permanently and can be followed. Monero cannot, and we do not take those cases.

We say so at the first call, not after the invoice

The distinction everything else hangs on. A freeze is an exchange or issuer stopping the funds moving — that can happen in days. A recovery is money arriving back with you, which needs a court order or an issuer's payout process: 6–9 months from an exchange, longer for stablecoins, 6–36 months for complex cases. Every dishonest recovery site works by quoting the first number to answer the second question.

§ 02 — The six types

The six ways it happens.

01

Rug pulls and exit scams

A token or project raises money, then the people behind it drain the liquidity and disappear. Because the funds move through decentralised exchanges and bridges by design, and because the operators are pseudonymous from the start, this is the hardest category in this list to recover from — and the one most likely to be misrepresented to you by firms that need the case. How a rug pull works, and the narrow conditions under which anything is recoverable →

02

Romance and long-con investment scams

A relationship is built over weeks or months — romantic, friendly or professional — and then an investment opportunity appears inside it. The victim funds an account that looks real, sees returns that are not, and is asked for more. Losses here are among the largest of any category because the victim sends the money themselves, repeatedly. How the money moves, and when it can still be caught →

03

Wallet drainers

A malicious contract or fake site obtains a signature or an approval, and empties the wallet in one transaction — often for assets the victim never intended to touch. The theft is instant, but the funds still have to be laundered and cashed out afterwards, which is where the opportunity to intervene lies. Which permission was abused, and what to do in the first hour →

04

Fake exchanges and fake platforms

A trading site, app or broker that looks entirely ordinary, takes deposits, shows a growing balance, and blocks withdrawals — usually by demanding a tax, fee or verification payment first. The balance was never real; the deposits were. How the platform is built, and where the deposits went →

05

SIM swaps and account takeovers

The attacker takes control of the phone number, defeats SMS-based two-factor authentication, and withdraws from the victim's own exchange account. Distinctive because the theft leaves a clear trail on the exchange's own systems — the account is the crime scene, and it belongs to the victim.

06

Address manipulation

Malware or a spoofed address causes a transfer to go to the wrong destination — frequently an address that differs from the intended one only at the beginning and end. It rarely appears on lists of scams because it feels like the victim's own mistake. It is not: it is an attack, and it is one we have handled — a $40,000 USDT transfer to Kraken sent to a manipulated address is among the cases documented on our cases page.

§ 03 — Recoverability

An honest recoverability summary.

No percentages here — they would be invented. What follows is which conditions have to hold for a case in each category to be worth opening at all.

CategoryRecovery is realistic when…Typical difficulty
Rug pullThe proceeds were consolidated and moved to a centralised exchange, and it is early enough that they are still thereHardest
Romance / investmentDeposits went to accounts at real exchanges, and the case is opened while the funds remain in the chain of accountsModerate
Wallet drainerThe drained assets are traced and reach a screening service before cash-outModerate
Fake exchangeDeposits are traced out of the platform to identifiable accounts elsewhereModerate
SIM swapUsually the strongest position — the withdrawal is documented by the victim's own exchange, and there is a counterparty on both endsBest odds
Address manipulationThe receiving address is at, or routes into, an exchangeVaries sharply

Why we publish the difficult answers. Our figure is 68% success rate on accepted cases · measured over the past 24 months. The word accepted is doing real work: we decline cases where we see no realistic prospect of recovery. That is a strange thing to advertise — and in a sector whose principal business model is charging desperate people for hope, it is the most informative thing we can tell you about ourselves.

§ 04 — The second scam

The second scam, aimed at people who have already been robbed.

If someone contacted you offering to recover your funds — by message, by email, in a support group — treat it as an attack. Lists of victims circulate and are sold, and the approach is the tell.

The FBI's Internet Crime Complaint Center has issued repeated advisories about fictitious law firms contacting crypto scam victims and offering to recover funds for an up-front fee. Between February 2023 and February 2024 alone, victims re-targeted this way reported losses of more than $9.9 million. The advisories are public: PSA240624 and PSA250813.

This applies to us too. We do not cold-message victims, we are not affiliated with any government agency, and no agency refers cases to us. If someone approaches you in our name, it is not us — report it to IC3. Before engaging anyone, including us, run the checklist on our verification page; our registry entries are published in full on credentials.

§ 05 — Our limits

What we do not do.

Monero.

It cannot be traced. We decline rather than bill the attempt.

Chinese OTC channels.

Outside what we can work effectively.

Cases where the source of the funds cannot be confirmed.

Non-negotiable.

Non-crypto assets.

Not our field.

Cases with no realistic prospect of recovery.

Declined at the first call.

Work for a client who misrepresents the facts.

We stop, at whatever stage we find out.

Legal practice.

Forensics and the evidence base are ours; police reports, freeze filings and court applications are carried out by partner law firms in the relevant jurisdiction.

Guarantees.

Recovery is decided by courts, exchanges and token issuers. Anyone promising the outcome is promising something they do not control.

§ 06 — First steps

If it has just happened.

Stop sending money.

Any further payment — a fee, a tax, a verification deposit, a "release" charge — is part of the same attack. There is no exception to this.

Especially if you are being told the funds are nearly released

Save everything.

Transaction hashes, wallet addresses, the platform's URL, screen recordings, chat logs, names and phone numbers. Evidence disappears when accounts are deleted.

Transaction hashes matter most — they are what we trace

Report it to the police.

The formal block at an exchange rests on a police report.

Where and how, by country: our reporting guide

Get the transactions flagged.

Send us the hashes; flagging happens within four hours of intake and the assessment call costs nothing.

[email protected] · +971 56 182 9077 · reply within 2 business hours

Check whoever you engage — including us.

Ten points, on our verification page. It works on anyone.

Threshold from $200,000; smaller cases considered individually
§ 07 — FAQ

Questions people ask after a crypto theft.

The ones where the money reaches a centralised exchange and is still sitting there. An exchange has an operator, a compliance team and an account holder behind the address, so there is somebody who can be asked to stop the funds and somebody a court can order to return them. Thefts where the funds stay on-chain — swapped through decentralised exchanges, bridged between networks, pushed through a mixer — have no such party. That distinction matters far more than what the scheme was called.

§ 08 — Authorship

Who wrote this, and who checked it.

Taras Podhorodetskyi

Founder and CEO, StarCompliance · blockchain investigations since 2022 · speaker, WOW Summit 2024 · interviewed by ForkLog, 23 July 2024

Reviewed by: compliance reviewer — name and role published with the next update of this page.

Disclaimer. This page is informational and is not legal advice. It describes how these schemes generally operate and what usually determines whether funds can be recovered; no assessment of any individual case can be made from a description alone. Recovery decisions rest with courts, exchanges and token issuers, and no outcome is guaranteed. Company figures are stated as of 30 July 2026.
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