On August 13, 2025, the FBI’s Internet Crime Complaint Center (IC3) released a new public service announcement warning about a disturbing evolution in cryptocurrency-related scams: fictitious law firms targeting scam victims themselves (IC3 PSA 250813). Criminals are now posing as attorneys, government officials, and recovery services, promising to retrieve stolen crypto while demanding upfront fees. Instead of helping, they are stealing even more.
For anyone who has lost money in a cryptocurrency scam, this is a cruel twist. Victims who are desperate for justice are now being re-victimized, often losing thousands more. The trend highlights not only the adaptability of cybercriminals but also the need for heightened awareness among investors, businesses, and law enforcement.
According to the most recent FBI advisory, criminals set up elaborate operations that look like legitimate legal practices. These fake firms often build convincing websites, use fabricated documents, and even steal real attorney names or bar license numbers to bolster credibility.
Once they establish contact with a victim, the fraudsters claim they can recover stolen funds. They then demand upfront payments for supposed taxes, customs fees, processing costs, or insurance. After collecting money, the scammers either vanish or invent new reasons to demand additional fees.
The victims are left not only without their original cryptocurrency but also with further losses. This cycle of re-victimization is what makes the scheme particularly devastating.
The FBI has been tracking the steady growth of recovery fraud schemes for several years. Each new warning shows how the scams have become more convincing and damaging.
This evolution demonstrates the creativity and persistence of fraudsters. They continue to refine their approach, exploiting the trust people place in institutions like law firms and government agencies.
Victims of crypto scams are uniquely vulnerable to these schemes. Unlike credit card fraud or bank theft, cryptocurrency transactions are irreversible. Once tokens leave a wallet, there is no central authority that can reverse the transaction. This finality makes victims desperate for solutions and more willing to believe anyone who claims they can help.
Many victims also lack a clear understanding of how law enforcement investigations actually recover stolen funds. They may not realize that blockchain tracing takes time, requires official processes, and cannot guarantee full recovery. Scammers exploit this knowledge gap by presenting themselves as experts with special tools or government connections, offering a false sense of hope.
The emotional toll also plays a role. Victims often feel embarrassed, angry, or desperate. These emotions create the perfect opening for criminals who know how to promise exactly what victims want to hear: quick recovery and justice.
The FBI’s advisories highlight several recurring red flags that victims and businesses should watch for:
Recognizing these warning signs can prevent further victimization and stop fraudsters from collecting additional funds.
The FBI and other law enforcement agencies are clear: legitimate authorities will never ask for money in order to return seized funds. Recovery from crypto scams requires formal investigations, subpoenas, cooperation with exchanges, and in many cases, cross-border coordination. It is a slow and methodical process, not a quick fix.
There are legitimate companies that assist victims of cryptocurrency fraud, but their role is often misunderstood. These firms provide investigative expertise by tracing stolen assets, compiling evidence, and producing reports that can be handed to law enforcement. What they cannot do is seize funds, compel an exchange to cooperate, or guarantee recovery. Only law enforcement has the authority to take those steps. Any party claiming they can recover stolen crypto independently is simply not telling the truth.
This is where advanced blockchain analytics comes into play. Investigators use tools like Merkle Science’s Tracker to trace funds across wallets, exchanges, and even cross-chain bridges. While recovery is never guaranteed, tracing provides evidence that can lead to seizures and arrests. Unlike fictitious law firms, real investigators rely on data, evidence, and partnerships with legitimate institutions.
One of the most striking lessons from the rise of fictitious law firms is how easily criminals exploit digital identity gaps. Victims often cannot verify whether a supposed attorney or law firm is legitimate. In crypto, similar weaknesses exist when it comes to wallet addresses and customer onboarding.
This is where verified, blockchain-based digital identity systems could make a difference. Tamper-resistant credentials stored on-chain would give individuals and institutions a more reliable way to confirm identities. For victims, that could mean being able to immediately check whether a law firm is real. For crypto businesses, it could mean stronger defenses against fraudsters hiding behind fabricated information.
For individuals:
For businesses:
Fictitious law firms are only the latest example of criminals exploiting hope and confusion. The underlying pattern is clear: whenever new technologies or financial systems emerge, adversaries adapt faster than protections do. Crypto is no exception.
For compliance teams, exchanges, and custodians, this means taking a proactive approach. Sanction screening, predictive risk monitoring, and robust identity verification are not optional. They are essential to prevent adversaries from turning weaknesses into profit.
The FBI’s August 2025 advisory should serve as a wake-up call. Criminals are not content with stealing once. They will circle back, impersonating trusted professionals to steal again. For victims of crypto scams, the most important step is to resist the urge to believe easy promises. For businesses, the responsibility is to raise awareness and help protect customers from falling into the same trap twice.
Fighting fraud with more fraud is a cruel strategy, but it is one that is working. Awareness, vigilance, and the right investigative tools are the only way to stop it.
