Cryptocurrency theft class action lawsuit investigation

Cryptocurrency theft: Who’s affected?

Did you invest in cryptocurrency and experience a significant loss due to theft, hacking or a scam? You may be eligible for compensation. Fill out the form on this page to learn more. 

Theft remains a significant risk to crypto investors nationwide. In 2022, over $3.7 billion worth of cryptocurrency was stolen from investors, according to Chainalysis. Criminals employ a variety of tactics to unlawfully obtain cryptocurrency holdings. These include hacking personal crypto wallets, deceiving individuals into sending or donating Bitcoin through scam operations, and other illicit means. Due to the nature of cryptocurrency networks, recovering stolen funds can prove extraordinarily difficult. 

If you incurred significant financial losses in the form of cryptocurrency within the past year, a class action lawsuit investigation may provide you with legal recourse. Specifically, U.S.-based individuals who lost $250,000 or more in cryptocurrency from a hack, scam or theft in the past 12 months could be eligible to participate. The class action aims to help recoup losses for victims and set them on a path toward financial recovery and restoration.

How is cryptocurrency hacked?

In general, the mechanisms surrounding cryptocurrency are very secure. Cryptocurrency transactions are recorded in a digital ledger called a blockchain, which is visible to the general public. Blockchains utilize encryption techniques and a decentralized network to record transactions securely and reliably. These aspects of the network make it exceptionally difficult to manipulate or hack. 

However, weaknesses that exist outside of the actual blockchain may create opportunities for hackers. For example, individual cryptocurrency wallets and accounts can be targeted through credential theft, malware infections or social engineering scams. 

The number of ransomware attacks has also increased in recent years. This is where a hacker encrypts the victims’ important files and demands payment in cryptocurrency for decryption. 

While blockchain technology has strengthened the security of cryptocurrency transfers, vigilance is still required to protect your personal crypto wallet. 

What are Bitcoin scams?  

Unfortunately, scammers continually develop new ways to con unwitting people out of their hard-earned money. Cryptocurrency presents a cutting-edge way to do so. Many of the techniques associated with Bitcoin scams are common scams that have been adapted to work in the digital realm. Additionally, the anonymity associated with cryptocurrency and Bitcoin is being used against the victims to ensure recovery is less likely.

Common Bitcoin scams include but are not limited to: 

Investment scams: With investment scams, the “investment manager” often guarantees huge returns or claims that an opportunity carries zero risk. However, no one can ensure this type of success in financial markets. Prudent investors should always keep in mind that there is always some degree of risk. 

Romance scams: As part of this ploy, perpetrators often contact their victims via social media or dating sites and cultivate a romantic relationship. Once the victim has developed feelings, the scammer exploits those emotions and asks the individual to transfer funds. 

Job impersonators: Many times, a scammer will say they work for a large, well-known corporation. They establish themselves as trustworthy and then convince the individual to buy a product or service. 

Celebrity impersonators: Similar to job impersonators, these scammers pretend to be someone they are not. They pretend to be someone famous, including musicians, politicians, and actors. They use the celebrity’s pristine reputation to convince individuals to send money.

Blackmail scams: As the name implies, blackmail scams threaten to disclose a victim’s sensitive information or potentially harmful images to compel the victim to make a payment. 

With the abundance of creative ruses, it is critical that individuals scrutinize every request for money, especially if that request utilizes cryptocurrency. With cryptocurrency, it is very difficult to recoup funds once they have been transferred. Cryptocurrency payments are typically not reversible.  

Fill out the form on this page to see if you qualify for a free case evaluation.