How to Report Crypto Scams and Recover Your Lost Funds

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How to Report Crypto Scams and Recover Your Lost Funds

As the popularity and price of cryptocurrencies, such as Bitcoin, Dogecoin, and Ethereum, continue to rise, so do the online scams associated with them. If you're looking to , you're not alone - many people, even sophisticated business people, have been taken in by cryptocurrency scams.

According to the Federal Trade Commission, 7,000 people reported losing over $80 million to crypto-related scams within six months, and the average amount consumers reported losing to the scams was $1,900. These figures reflect a 12x increase in reports compared to the same period a year ago and a nearly 1,000% rise in reported losses.

Scammers are finding creative ways to con people into fraudulent crypto investments. They use social engineering scams such as giveaways, romance scams, phishing, and extortion emails to trick you into giving up information. The data they get gives scammers access to your digital wallet or other types of private information such as security codes and sends cryptocurrency to a compromised digital wallet.

If you've lost money as a result of a crypto scam, reporting it is the best way to have a chance at recouping your losses. You can report a complaint to the US Securities and Exchange Commission (SEC). Lodging a complaint with a federal agency will increase your chance of asset recovery if a more considerable investigation is ever opened against your scammer. But doing it on your own can be challenging. DoNotPay offers a faster, more convenient, automated, and less frustrating way for you to report crypto scams to the SEC.

What Complaints Can Be Filed with the SEC?

The SEC exists to protect investors and maintain fair markets. They encourage the public (whistleblowers and non-whistleblowers) to report any potential violations of securities laws, which may include actions such as:

  • Operation of a Ponzi scheme
  • Providing misleading or incomplete stock information
  • Accounting fraud
  • Manipulation of securities
  • Theft or embezzlement
  • Complaints against brokers
  • Bribing foreign officials
  • Insider trading
  • Many other types of investment professional misconduct

How to Report Crypto Scams by Yourself

The SEC makes it reasonably straightforward to report crypto scams and doesn't have a time limit for reporting them. Still, it's advisable to report it as soon as possible to give the SEC more time to investigate your complaint. You can report crypto scams online or print out the forms and mail them. Gather any pertinent information you have; this could include the dates of specific transactions or conversations, correspondence regarding the transactions, and financial statements. Other information you need to provide includes:

  1. Your full name and contact information, including mail and email addresses, and telephone numbers
  2. Contact information for any individual or company you mention in the report, including their full name, mail and email addresses, and telephone numbers
  3. A detailed description of the events or circumstances giving rise to your complaint. Include information such as who was involved in the conduct and how, why, and when the conduct occurred

You need to ensure that you fill the form as any missing information can result in a delay in your investigation. The more information you provide, the easier it will be for the SEC to investigate your complaint. Once you've completed the form, click "submit form," and you're done.

Is There an Easier Way to Report Crypto Scams?

As the world's first AI Consumer Champion, DoNotPay makes mundane processes, such as reporting crypto scams to the SEC on your own, less annoying through automation. DoNotPay's feature for filing SEC complaints will enable you to in under five minutes, without administrative hassles; we make the entire process super easy. Some benefits of using DoNotPay include:

FastYou don't have to spend hours trying to report crypto scams to the SEC.
EasyYou don't have to struggle to fill out tedious forms or keep track of all the steps involved in reporting crypto scams.
SuccessfulYou can rest assured knowing we'll make the best case for you. We'll ensure that all pertinent information is included correctly.

How to Report Tax Fraud Using DoNotPay:

If you want to file an SEC complaint but don't know where to start, DoNotPay has you covered. Create your cancellation letter in 3 easy steps:

  1. Search SEC Complaint on DoNotPay.
  2. Answer basic questions about your broker and complaint (you can also use your automatically generated complaint template).
  3. DoNotPay will automatically run a bot to work on your behalf and securely fill out your SEC complaint form.

We Have Resources That'll Help You Save Time and Money

DoNotPay is a multi-faceted assistant that can help you with all kinds of issues and simplify any or bureaucratic processes that can slow you down. Apart from helping you report scams to the SEC, we can also help you resolve several other issues with many different entities, including:

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