FBI Warns of Fake Law Firms Exploiting Crypto Scam Victims with $9.9M in Reported Losses

The U.S. Federal Bureau of Investigation (FBI) has issued a public service alert warning individuals who have been scammed out of their cryptocurrency holdings about the growing threat of fictitious law firms offering false legal services [1]. These fraudsters are targeting victims who are desperate to recover their lost assets, often contacting them through social media or messaging platforms with fabricated offers of legal assistance [2]. The scammers frequently use fake websites, counterfeit legal documents, and even impersonate government agencies such as the FBI or the Consumer Financial Protection Bureau to lend an air of legitimacy to their schemes [3]. In some cases, victims are told they are part of an official government list of scam victims, further reinforcing the illusion that the offer is legitimate [4].

The FBI has emphasized several red flags that users should be aware of when encountering unsolicited legal offers. These include impersonation of government officials, requests for payment in cryptocurrency or gift cards, and claims of knowledge about past transactions or financial details [6]. The bureau also clarified that genuine legal entities would be able to verify their credentials and employment, and that the U.S. government does not request payment for law enforcement services [6]. According to an FBI alert from last year, victims of these fictitious law firm scams reported combined losses exceeding $9.9 million [7]. The FBI has urged individuals to adopt a zero-trust mindset when receiving unexpected legal contact and to take verification steps such as video calls and document checks before engaging with any entity claiming to offer legal services [8].

The FBI’s warning comes amid broader concerns about the vulnerability of cryptocurrency users to evolving forms of financial fraud. According to a blockchain security firm, approximately $2.5 billion in crypto was lost due to hacks, exploits, and scams in the first half of 2025 [1]. Though some victims have seen partial recoveries through exchanges or law enforcement actions, many are left without clear paths to reclaim their assets and are thus more susceptible to being exploited a second time [1]. The FBI, as one of the primary U.S. agencies handling cryptocurrency-related crime, has taken an active role in seizing illicit assets. For example, in July, federal officials filed a lawsuit over a $2.4 million BTC seizure linked to a hacking group [1]. However, the FBI also noted that some of the most alarming crimes in the crypto space include physical threats such as kidnappings, where victims are targeted to steal digital assets or demand ransoms in Bitcoin [1].

The emergence of these fictitious legal entities highlights the emotional and psychological toll of crypto scams and the urgency for victims to seek support through official channels. As fraud tactics become more sophisticated, public awareness and due diligence remain critical in preventing further exploitation.

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Source:

[1] https://coinmarketcap.com/community/articles/689e509dfcf73c68c4ab9dc6/

[2] https://dig.watch/updates/con-artists-pose-as-lawyers-to-steal-from-crypto-scam-victims

[3] https://cointelegraph.com/news/fbi-warning-law-firms-crypto-scammers

[4] https://thehackernews.com/2025/08/google-requires-crypto-app-licenses-in.html

[5] https://www.thestreet.com/crypto/markets/fbi-exposes-fictitious-law-firms-conning-crypto-scam-victims

[6] https://www.ic3.gov/PSA/2025/PSA250813

[8] https://www.ainvest.com/news/scammers-impersonate-lawyers-target-crypto-fraud-victims-fake-recovery-schemes-2508/