The U.S. Federal Bureau of Investigation has issued a fresh alert warning crypto scam victims about fraudulent “law firms” offering to recover stolen digital assets.
In a public service announcement on Wednesday, the FBI said these outfits often approach individuals who have already lost funds to earlier scams, putting them at risk of losing more money or exposing sensitive personal data.
The warning updates similar notices issued in August 2023 and June 2024. The bureau advised the public to avoid any law firm that requests payment in cryptocurrency or prepaid gift cards, and to be wary of unsolicited contact — especially if they have not reported their case to law enforcement.
“Be cautious of law firms contacting you unexpectedly,” the FBI said.
Blockchain security firm CertiK estimates that $2.5 billion was lost to hacks, exploits, and scams in the first half of 2025. While some exchanges have been able to return funds, many victims are left to seek remedies on their own — making them potential targets for recovery scams.
The FBI frequently leads U.S. investigations into crypto-related fraud and asset seizures. Treasury Secretary Scott Bessent recently said that any seized digital assets would first be used to compensate victims before being added to a government-held Bitcoin stockpile.
In April, the FBI’s Dallas office seized $2.4 million worth of bitcoin allegedly tied to a hacking group member, with federal prosecutors later filing to claim the funds.
Criminal tactics against crypto holders have also included kidnapping victims or their relatives to extort digital assets, according to SatoshiLabs founder Alena Vranova, who estimates at least one Bitcoiner worldwide is targeted every week.
Earlier this week, the Treasury’s Financial Crimes Enforcement Network (FinCEN) said a surge in the number of crypto ATMs — also known as convertible virtual currency (CVC) kiosks — coincided with a rise in non-compliant operators. Many are failing to register as money services businesses, a legal requirement under the Bank Secrecy Act.
The FBI’s Internet Crime Complaint Center received nearly 11,000 reports involving crypto ATMs last year, with losses totaling nearly $247 million. FinCEN pointed to data from Coin ATM Radar showing U.S. crypto ATMs jumped from about 4,250 in early 2020 to over 30,600 by this month.
Among the red flags cited by the Treasury are customers sending multiple payments just below the reporting threshold, large transactions from users with no history, and frequent use of multiple kiosks. FinCEN also urged banks to be alert to customers withdrawing large sums with the intent of using crypto ATMs.
