Scammers Pose as Law Firms to Plunder Crypto Victims’ Hope and Wallets

The FBI has issued a 2024 report highlighting the escalating risk of crypto investment fraud, particularly through fraudulent "law firms" offering recovery services to victims of digital asset scams. These scams typically target individuals who have already lost funds in prior fraudulent schemes, with victims often being elderly or emotionally vulnerable. The report details how fraudsters charge up-front fees, fail to deliver promised services, and instead exploit their victims further by requesting additional payments or stealing personal data [1]. The FBI warns that these scammers frequently impersonate legitimate legal entities to create a false sense of trust and safety.

In its updated advisory, the FBI outlines red flags that potential victims should recognize, such as demands for payment in cryptocurrency or prepaid gift cards, unsolicited communication from “law firms,” or requests to send funds to third-party entities. The agency also recommends due diligence measures, including verifying the legitimacy of any recovery company through the "Zero Trust" model, recording all interactions, and confirming the credentials of individuals claiming to represent government or law enforcement agencies [1]. These measures aim to reduce the likelihood of falling victim to secondary scams after initial losses.

The FBI’s warnings align with broader data on digital asset crime, which continues to rise. CertiK’s 2024 Web3 Security Report found that over $2.3 billion was stolen in 760 on-chain incidents, averaging $3.1 million per incident [1]. Chainalysis also noted that 2024 was a record year for illicit inflows, while PeckShield Alert reported a 27% increase in thefts during July 2024 compared to the previous month. These trends suggest a persistent and growing threat in the digital asset space, with 2025 on track to exceed 2024’s levels [1].

The U.S. Department of Justice (DOJ) has also taken action against crypto-linked crimes, seizing $2.8 million in cryptocurrency, $70,000 in cash, and a luxury vehicle from a ransomware scheme involving a Russian national. The individual, Ianis Antropenko, is accused of using Zeppelin ransomware to attack over 138 American victims, including a Dallas-based firm. The DOJ emphasized its ongoing efforts to track and dismantle ransomware operations and recover stolen assets for victims [2]. This case also demonstrates how crypto tracing capabilities are improving, allowing law enforcement to identify and seize illicit assets more effectively.

Meanwhile, the DOJ has also addressed fraud involving crypto-linked financial schemes. Three China-owned firms were accused of defrauding the U.S. government through false certifications under the Paycheck Protection Program (PPP). The companies, BWI North America Inc., BWI Indiana Inc., and BWI Chassis Dynamics, were found to be ineligible for PPP loans due to their ultimate ownership by Chinese state-run enterprises. To resolve the allegations, the companies agreed to collectively pay $21.66 million to the U.S. government [3]. The DOJ’s actions underscore the continued scrutiny of foreign-linked businesses operating in the U.S. and their compliance with financial regulations.

These developments highlight the importance of heightened vigilance among investors and regulators. As the FBI and DOJ continue to issue advisories and take enforcement actions, the focus remains on both preventing fraud and recovering stolen assets. With digital asset crime on an upward trajectory, experts stress the need for robust regulatory frameworks and public education to mitigate the risks of crypto-related fraud [1].

Source:

[1] FBI issues alert on rising fraudulent 'law firms' (https://coingeek.com/fbi-issues-alert-on-rising-fraudulent-law-firms/)

[2] DOJ seizes millions in crypto tied to ransomware operation (https://www.wfaa.com/article/news/crime/doj-seizes-millions-in-crypto-tied-to-ransomware-operation/287-0b462490-caba-4c5b-6860d8be345f)

[3] China-Owned Firms Caught in Alleged Fraud Scheme, Agree to Pay $21,660,983 to US Government (DOJ) (https://dailyhodl.com/2025/08/17/china-owned-firms-caught-in-alleged-fraud-scheme-agree-to-pay-21660983-to-us-government-doj/)