Cryptocurrency fraud continues to skyrocket, with scammers innovating every day—from SIM swap attacks and phishing schemes to social engineering through fake support chats. Hackers don’t just target your wallets; they aim to dismantle your financial security and peace of mind. At 1818, our attorneys understand the unique challenges of crypto fraud and the tactics exchanges use to avoid liability. We’ve helped clients reclaim millions of dollars—and we’re ready to fight for you.
Why Exchanges Don’t Protect You
Under the federal Electronic Funds Transfer Act (EFTA), U.S.-based cryptocurrency platforms are obligated to recredit victims whose funds were transferred by unauthorized actors, even if the victim was tricked into providing access. However, these platforms routinely shirk that responsibility, blaming users for “mistakes” and hiding behind vague terms of service rather than accepting liability.
Typical Scam Methods
- SIM swap attacks – Fraudsters hijack your phone number, bypass two-factor authentication, and drain your exchange account. Mobile carriers must verify your identity before allowing a SIM change, and failure to do so may trigger liability under federal law.
- Phishing and fake support – Hackers deploy deceptive emails, pop-ups, or chat interfaces that mimic legitimate exchanges. You think you’re logging into Coinbase or Gemini, but you’re handing your credentials to a fraudster.
- Social engineering – Attackers pose as customer support or law enforcement to trick users into sending crypto or revealing private keys.
Legal Leverage Under Federal Law
Even when you input your password, stolen funds are considered unauthorized if the theft resulted from deception. Under EFTA, exchange platforms are required to investigate and, if they fail to protect your account, recredit your lost funds. We’ve seen exchanges like Coinbase, Binance US, Gemini, Kraken, and Uphold deny responsibility, only to be compelled by legal action to reimburse victims.
Why Recovering Crypto is Complex
1818’s team has deep experience navigating crypto’s unique issues:
- Irreversible transactions – Once crypto leaves your account, blockchain immutability usually prevents voluntary reversal. However, exchanges can still recredit accounts under consumer protection laws.
- Regulatory ambiguity – The cryptocurrency industry lacks a unified federal regulatory structure, creating loopholes that platforms exploit.
- Anonymity and cross-border transfers – Tracking stolen funds is challenging, especially when hackers utilize mixers or offshore wallets. But when theft occurs via a U.S. exchange, it triggers legal obligations.
What You Should Do Immediately
- Contact the exchange as soon as possible. Report the theft and request an investigation in writing.
- Notify law enforcement. File reports with local police, the FBI (via IC3), or the SEC if relevant.
- Speak with a lawyer before giving up. Exchanges are far less likely to reimburse without legal pressure.
- Preserve all evidence. Screenshots, correspondence, transaction IDs, and IP logs can be critical.
Don’t Wait—Protect Your Future
Crypto exchanges have lawyers; you should too. Waiting gives them room to deny liability and blame you for “carelessness.” Take swift action to preserve your rights and recovery options.
If you lost Bitcoin, Ethereum, XRP, Solana, or other cryptocurrency to fraud, let 1818 help:
- Investigate your case
- Demand account recredit
- Hold exchanges accountable
- Recover your money—plus potential damages
Take Action Today
Call 1818 today for a free consultation. We fight to restore your stolen crypto and prevent future frauds from silencing victims.
About 1818 Litigation Attorneys
1818 combines decades of litigation and regulatory experience with deep knowledge of the crypto space. We champion the rights of victims because we believe pools of stolen crypto shouldn’t line the pockets of platforms that fail to enforce robust security.
