Legal Options for Victims of Cryptocurrency Scams

Crypto scams are becoming increasingly sophisticated—and increasingly common. If you’ve been defrauded, you may feel embarrassed, overwhelmed, or unsure where to turn. Our firm helps victims of cryptocurrency fraud take action, protect their rights, and pursue every available avenue for recovery.

Below is an overview of how we approach these cases under federal law, as well as New Jersey and New York law.

Our First Steps: Stop the Loss and Secure the Evidence

When a client comes to us after a crypto-related loss, we act quickly to:

1. Prevent Further Financial Harm

• Contact banks, credit card companies, and payment providers
• Notify crypto exchanges or platforms involved
• Where possible, seek emergency court orders to freeze accounts or wallets

2. Gather and Preserve Critical Evidence

• Screenshots of messages and websites
• Wallet and transaction records
• Emails, texts, and social-media communications
• A clear timeline of events

Strong documentation significantly improves the chances of identifying the scammer and recovering funds.

Federal Options

Reporting to U.S. Authorities

We assist clients in filing detailed reports with federal agencies such as:

• FBI / Department of Justice (DOJ)
• Securities and Exchange Commission (SEC)
• Commodity Futures Trading Commission (CFTC)

These agencies may pursue criminal cases or enforcement actions that can result in restitution or other compensation for victims.

Federal Civil Claims

Depending on the circumstances, federal law may also provide private rights of action—particularly in cases involving investment fraud, organized schemes, or platform misconduct.

New Jersey Remedies

For clients in New Jersey—or scams with NJ connections—we consider powerful state-law options including:

New Jersey Consumer Fraud Act (NJCFA)

New Jersey has one of the strongest consumer-protection statutes in the country. It covers deceptive or fraudulent practices related to goods or services, including financial or investment-related services.

Successful claims may result in treble (triple) damages and recovery of attorneys’ fees.

Other NJ Claims

We may also pursue:

• Fraud and misrepresentation
• Conversion (wrongful taking of funds)
• Unjust enrichment
• Liability under New Jersey securities laws

Certain claims can also be directed at platforms or intermediaries that failed to act reasonably or honor their obligations.

New York Remedies

Because many crypto platforms operate in or through New York, NY law is often relevant—even for clients outside the state.

Consumer Protection (GBL §§ 349 & 350)

New York law prohibits deceptive business practices and false advertising. These statutes can apply to crypto schemes promoted to the general public and may allow for enhanced damages and attorneys’ fees.

Common-Law Claims

We frequently assert:

• Fraud and fraudulent inducement
• Negligent misrepresentation
• Conversion and constructive trust
• Breach of contract or platform terms
• Breach of fiduciary duty where applicable

Regulatory Pressure

New York has the most active crypto-regulatory environment in the country. We assist clients in submitting complaints to the:

• New York Attorney General (NYAG)
• New York Department of Financial Services (NYDFS)

Their investigations can lead to penalties, settlements, and victim restitution.

Claims Against Crypto Exchanges and Platforms

Not all losses come solely from scammers. Sometimes exchanges, apps, or other platforms play a role by failing to monitor fraud, provide adequate security, or follow their own advertised policies.

We evaluate:

• Breach of contract
• Negligence and failure to implement safety protocols
• Misleading or deceptive marketing
• Arbitration requirements in platform terms of service

Many cases can be effectively pursued through arbitration when required.

Asset Tracing and Freezing Orders

Even when scammers move funds through multiple wallets, blockchain technology allows for transaction tracing. We coordinate with blockchain-analysis professionals and seek:

• Subpoenas to exchanges
• Emergency orders to freeze or preserve assets
• Identification of wallet owners and fund flows

Early action is often crucial.

If You Believe You’ve Been Scammed

You should take the following steps immediately:

1. Stop all payments or transfers.
2. Preserve all records—screenshots, emails, chats, transaction receipts.
3. Document what happened in a simple timeline.
4. Contact us!

Our firm will evaluate your situation, explain your legal options, and help you determine the best path forward—whether through civil actions, regulatory complaints, negotiation with platforms, or coordinated referrals to authorities.