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Do not pay or share account details with an unsolicited NFT recovery service until you verify it independently. Guaranteed-return promises, upfront or escalating fees, requests for seed phrases or passwords, and claims of law-enforcement affiliation are serious warning signs. A tracing report may identify where crypto moved, but it does not itself recover an NFT or authorize anyone to seize assets.

Warning signs in an NFT recovery offer

Recovery fraud often targets people who have already lost cryptocurrency or an NFT. The FBI warns that scammers impersonate law enforcement, private companies, or law firms, and may reach victims through social media, messaging, search ads, or fabricated reviews. An unsolicited approach is a reason to stop and verify; by itself, it does not establish that a particular named business is fraudulent. FBI IC3 recovery-fraud warning

  • Guaranteed recovery: No credible pitch can promise that an NFT or funds will be returned in every case. The FBI identifies civil litigation as one option victims may choose, not a guaranteed route to recovery.
  • Upfront or escalating payments: The FBI describes schemes that take an initial deposit, provide questionable tracing reports, then demand more money. Treat new charges to “unlock,” “release,” or retrieve assets as a major red flag.
  • Sensitive-information requests: Do not provide a seed phrase, wallet password, exchange login, banking details, identity documents, or other sensitive information in response to a recovery pitch. The FTC warns against paying unsolicited recovery offers or sharing financial information. FTC guidance for people who were scammed
  • Unverified authority: A logo, badge, legal-looking document, or claim of FBI affiliation is not proof of authority. The FBI says law enforcement does not charge victims a fee to investigate crimes. FBI cryptocurrency fraud guidance
  • Pressure to act quickly: A demand for immediate payment or secrecy leaves little room for independent verification. Stop contact rather than following links or numbers supplied by the person pitching the service.

How to check a recovery service before responding

  1. Pause contact and payment. Do not send money or provide credentials while you assess the offer. Avoid links, phone numbers, or payment instructions included in the pitch.
  2. Look up the business and representative independently. Search their exact names with terms such as “complaint,” “scam,” or “review,” as the FTC recommends. Do not rely on testimonials or success stories supplied by the service. FTC refund and recovery scam guidance
  3. Verify any claimed government connection through official channels. If someone says they work with the FBI, contact a local FBI field office using contact details found independently through the agency’s official website or directory. Do not call a number provided by the person making the claim.
  4. Ask what the service actually does. Request a clear description of each task, who performs it, the full fee structure, what additional costs could arise, and what happens if tracing finds an address but no assets can be frozen. A report identifying transactions is not the same as recovering an NFT or cryptocurrency.
  5. Ask what authority would enable an asset freeze or return. The FBI states: “Private sector recovery companies cannot issue seizure orders to recover cryptocurrency.” Exchanges may freeze accounts under their own internal processes or in response to legal process; a private company’s report does not itself compel an exchange to act. This statement concerns cryptocurrency seizure orders and should not be read as resolving every NFT-specific legal remedy. FBI IC3 public service announcement

What a private recovery company can—and cannot—establish

A firm may offer transaction tracing or investigative services, but tracing does not prove that it can control a wallet, reverse a blockchain transaction, freeze an account, or return a stolen NFT. The FBI says exchanges may freeze accounts through internal procedures or legal process; private-sector recovery firms cannot issue seizure orders. Ask the firm to distinguish clearly between analysis it can perform and actions that require an exchange, law enforcement, or a court.

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Also clarify what was lost: an NFT transferred from a wallet is different from cryptocurrency paid to someone in a scam. The available U.S. agency guidance addresses cryptocurrency recovery fraud and does not settle every question involving a particular NFT, blockchain, smart contract, custodian, or jurisdiction. Do not infer from it that every NFT is impossible to recover—or that a specific service can retrieve one.

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Document the incident and report it

Save evidence before deleting messages or closing accounts. Keep the recovery pitch itself as well as records of the original loss. The FBI requests transaction information when victims report suspected crypto investment fraud. FBI IC3 guidance

  • Dates, amounts, and payment methods involved.
  • Wallet addresses, receiving addresses, and transaction hashes.
  • Emails, messages, social profiles, websites, advertisements, and phone numbers used by the suspected scammer or recovery service.
  • Receipts, contracts, tracing reports, and records of any fees paid or requested.

For suspected cryptocurrency investment fraud, the FBI directs victims to report through IC3 or contact a local FBI field office. For consumer fraud, use the FTC’s ReportFraud.ftc.gov. These reporting routes document a complaint; they are not promises that an agency will retrieve an NFT or refund losses.

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Reporting or seeking legal advice: which path fits?

Path Useful when What to prepare What it does not guarantee
Report and document You want to preserve a record and alert the agency relevant to the suspected fraud. The FBI’s IC3/local field office route is identified for suspected crypto investment fraud; the FTC route is for consumer fraud. Dates, amounts, payment method, wallet and receiving addresses, transaction hashes, and communications. That an agency will recover the NFT, cryptocurrency, or other loss.
Ask a lawyer about civil litigation You want advice about possible legal steps in the relevant jurisdiction. The FBI identifies civil litigation as an option a victim may choose. Incident records and questions about the lawyer’s jurisdiction, relevant experience, representation scope, and fees. That litigation will succeed or result in assets being returned.

Keep legal advice separate from a paid tracing pitch. If considering litigation, speak with a lawyer qualified in the relevant jurisdiction, and establish whether the proposed work is legal representation or only transaction analysis. The FBI’s guidance does not endorse a particular lawyer or recovery firm.

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How large is the reported crypto-fraud problem?

In its August 11, 2023 public service announcement, the FBI Internet Crime Complaint Center said more than $2.5 billion in cryptocurrency investment-fraud losses were reported for 2022. That figure concerns reported cryptocurrency investment fraud, not NFT recovery-fraud losses specifically. FBI IC3 public service announcement

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