Cryptocurrency Cases

Cryptocurrency presents unique challenges. On the one hand, it provides opportunities to completely digitize payment, transactions and trading. However, with these opportunities, there are new dangers. Although many welcome the fact that cryptocurrencies operate without central government control, this also means that consumers are not given the same protection and oversight as they are with credit card charges of bank transfers. 

Cryptocurrencies may keep transactions secure from hacking and third parties, but they can also hide the identity of those who commit fraud and provide cover for their nefarious activities. This can pose particular obstacles to fund recovery

Fortunately, crypto recovery is possible with MyChargeBack experts who have extensive expertise in cryptocurrency cases and recovering funds from the blockchain. Our crypto forensics professionals have state-of-the-art tools and proprietary databases that can track activity on the blockchain and unmask the people behind the transactions. MyChargeBack also has a close working relationship with law enforcement, government officials and regulators and has won many successful cryptocurrency cases. 

How Cryptocurrency Cases Are Different from Chargebacks and Wire Recalls

People who think fund recovery is easy may have had a positive experience with a chargeback after they have reported a credit card stolen or missing. 

This is one of the easiest types of fund recovery, and the most common. Those who have noticed unauthorized charges on their credit card after they have reported it missing can prove that they did not make the charges. Therefore, the issuing bank can feel confident that the customer is correct for reporting fraud. 

In addition, there is a lot of transparency with credit card charges and clearly defined processes for protecting consumers and allowing chargebacks in cases of fraud, unauthorized charges, and erroneous charges. Customer disputes in chargebacks can be more complicated, but at least there is complete visibility into the identity of the people involved in the dispute. 

Fund recovery through wire recall can be more complicated because there is no real chargeback. Charges cannot usually be reversed from a bank transaction, but the funds often need to be returned through a separate transaction. The merchant can launder the money in the time it takes to enact a wire recall, but at least there is a name on the account and the bank can identify the user. 

Cryptocurrency fund recovery is more difficult and complex than chargebacks and wire recall because all transactions on the blockchain are anonymous. It can be difficult for fund recovery experts to determine the identity of the people involved in transactions, but this can be done after a thorough investigation. 

The advantage of the blockchain is that all transactions can be seen. This means that once the identity of the people making the transactions is unmasked, the path of the money can be observed. However, the identity of those involved in all transactions must be uncovered before a full picture can be observed.

Therefore, cryptocurrency can be the most complex type of fund recovery since, unlike chargebacks and wire recalls, those behind the transactions are anonymous. This is why those who have lost money to merchant fraud or crypto scams or forex scams need MyChargeBack professionals to interpret the transaction patterns on the blockchain and determine who is behind them.

Law enforcement investigations can often identify who is behind the transactions, and MyChargeBack knows what information to provide and what questions to ask to get the attention and assistance from law enforcement and cyber security experts.

What Are the Most Common Cryptocurrency Cases?

Cryptocurrency cases have risen dramatically since 2020, and continue to be a significant problem. The FBI, Interpol and many other law enforcement agencies have raised the alarm about cryptocurrency scams, and financial service companies, as well as regulators, are on the alert on how best to deal with them. 

There are so many cryptocurrency cases that some consumers associate the very notion of cryptocurrency with fraud. However, that is not stopping the millions of people worldwide who are jumping on the cryptocurrency trend as digital currencies rise to record heights. The cryptocurrency enthusiasm waned in 2017 on the plethora of crypto scams, but the new 2020-2021 wave makes it clear that digital currencies are here to stay. 

Instead of staying away from cryptocurrencies, it is important to be aware of the types of scams that are common and how to stay safe buying and trading cryptocurrencies. The most common varieties of cryptocurrency cases include:

  • Fake social media crypto trading scams
  • False ICOs
  • Fraudulent crypto wallets
  • Crypto phishing scams
  • Unlicensed crypto brokers

There is a legitimate equivalent to all of these scams, but also warning signs. An unregulated broker that offers extravagant returns on cryptocurrency should be avoided, particularly if these deals are offered on social media rather than through brokerage services on a secure website. The majority of ICOs are fake, and investors should work only with a regulated ICO platform. 

Crypto wallets should be purchased only from a reliable and verified service and consumers should never give their crypto codes or keys to anyone. However, even after these precautions have been taken, consumers can still lose money in a false crypto trading deal or through an illegitimate cryptocurrency service. 

Strategies for Fund Recovery in Cryptocurrency Cases

Some people give up hope when they lose money through cryptocurrency because they have heard falsely that crypto recovery is impossible. Since all transactions on the blockchain are anonymous and since these transactions cannot be refunded, some victims relinquish the fight. However, there is always hope for crypto recovery, particularly when working with MyChargeBack, which has a long string of crypto recovery successes. 

So how can fund recovery in cryptocurrency cases be possible if the blockchain is anonymous? This issue of anonymity can be dealt with in several ways. First, although those who perpetrate fraud can be clever, they may not realize their obvious patterns. This is true with every kind of fraud. People are creatures of habit and this is also true of those who run fraudulent operations. 

Because MyChargeBack has extensive knowledge of the mechanics of fraudulent behavior in general and the activities of specific frauds, the patterns we observe on the blockchain can tell us who they are if we have observed them in the past. 

Those who operate scams tend not to strike only once but are repeat offenders who behave the same way, or may even be lazy enough to recycle content or old slogans on their advertisements or social media pages. Once we suspect who it is, we can test out our theories by observing the pattern of transactions and other clues to pinpoint the identity of the culprit. 

Second, one highly effective way of unmasking the identities behind cryptocurrency cases is through court orders of crypto codes. That is the way the FBI discovered who was behind the ransomware Colonial Pipeline case. The vast majority of the funds paid due to this extortion has been recovered because the FBI was able to subpoena the information that identified the cybercriminals. 

The power of subpoena can subvert the notion that the blockchain is completely anonymous and that those who perpetrate fraud can find a safe haven in cryptocurrencies. However, one of the reasons this subpoena was obtained was that the Colonial Pipeline ransomware case was extremely high profile and affected many people. 

However, even cryptocurrency cases that are not as high profile can result in a court order for the crypto codes and crypto keys. It takes significant time and effort to reach this point, but these court orders have helped many people recover funds from cryptocurrency. 

What Can Improve Chances for Winning Cryptocurrency Cases?

A court order may be effective, but it can cost the consumer huge legal fees. MyChargeBack has many strategies that can deal with cryptocurrencies cases quickly and can get funds back to clients sooner without the need to pay lawyers thousands of dollars.

For instance, we can confront the cryptocurrency service directly and can phrase our warning in a way that they will understand that they will pay a huge price for their fraudulent activity. Often, these people will return money to the client quickly to avoid severe penalties. 

However, it is better if this warning comes from MyChargeBack than an individual because we can indicate that we are on their trail and they are likely to get caught. Our experts also coordinate with law enforcement and regulators and have the experience to leverage their services to compel the cryptocurrency service to return money to clients. 

If the other party does not cooperate, we can ask law enforcement to pursue the case with our crypto intelligence reports, which often document that the suspect is a repeat offender and is the subject of many complaints. We can work together with authorities to bring fraudulent parties to justice and return funds for clients. 

Why MyChargeBack Is the Best Choice for Cryptocurrency Cases 

Our expertise, technological sophistication, and proprietary database are main factors that help us win cryptocurrency cases in our clients’ favor.  Over 450 different law enforcement agencies in more than 50 countries have been able to pursue cases based on the evidence that MyChargeBack has uncovered for its cryptocurrency clients.

The reports we provide may not be used in any court of law. Their contents are for information purposes only. All information is owned by Cactil LLC. Reports may not be shared with any outside party without our express written permission.

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