How Cybercrime Lawyers Investigate Cryptocurrency Scams

When you hire a cybercrime lawyer because you’ve been caught in a crypto scam or pig butchering scam, one of your first questions is usually simple: What actually happens next? From the outside, cryptocurrency-enabled investment fraud looks chaotic—anonymous wallet addresses, offshore exchanges, and fast-moving transfers. Behind the scenes, however, a structured investigation process helps determine what happened, what evidence exists, and whether any recovery avenues are realistically available.

This guide walks through how a cybercrime lawyer approaches a cryptocurrency fraud case: from the first review of your documents, to blockchain analysis and exchange engagement, to decisions about civil action and coordination with law enforcement. While not every case leads to recovery, understanding the process can help you ask better questions, make informed choices, and avoid unrealistic promises from “recovery services” that are not actually lawyers.

1. The Types of Cryptocurrency Scams Cybercrime Lawyers Handle

Cybercrime lawyers see a broad range of cryptocurrency-enabled investment fraud, but most cases fall into a few recognizable patterns. Knowing which pattern your situation resembles helps shape the investigation strategy and the tools used.

One common scenario is the pig butchering scam, where scammers build a long-term emotional or social relationship—often through dating apps, social media, or messaging platforms—before introducing a fake cryptocurrency investment opportunity. Victims are “fattened” with fake profits on fabricated dashboards, then “slaughtered” when they attempt to withdraw funds and are blocked, pressured to pay additional “taxes,” or simply ignored.

Other frequent cases involve exchange impersonation and fake trading platforms, where fraudsters clone or mimic real exchanges, create convincing apps, or deploy sophisticated phishing sites to capture credentials and redirect funds. Cybercrime lawyers also handle investment fraud and Ponzi-style schemes, where victims are promised guaranteed or unusually high returns from cryptocurrency trading or staking programs that never existed.

Finally, there are phishing and account takeover cases, where attackers gain access to existing wallets or exchange accounts through email phishing, SIM swapping, or malware, then quickly drain assets. Each scam type presents different investigative challenges and opportunities. A cybercrime lawyer’s first task is to correctly categorize the fraud so the investigation focuses on the most promising paths, rather than treating every crypto scam as identical.

2. Initial Case Evaluation and Evidence Gathering

Every investigation begins with what you already have in your hands. During an initial consultation, a cybercrime lawyer typically reviews any documents and digital evidence you can provide: transaction IDs (TXIDs), wallet addresses, exchange statements, screenshots of fake platforms, and chat logs with the scammers.

The goal of this early review is to answer a few critical questions:

What exactly happened, in what order, and over what timeframe?
How much money was involved, and in which currencies (fiat and crypto)?
Which platforms, exchanges, wallets, or banks were part of the payment flow?
What identifying information—usernames, emails, domains, phone numbers—exists for the people or entities behind the scam?

From there, the cybercrime lawyer identifies gaps in the evidence and suggests ways to fill them. That might mean exporting full transaction histories from exchanges, requesting bank statements, downloading entire chat logs, or capturing detailed screenshots of the crypto scam platform before it disappears. This is also the stage where the lawyer begins assessing viability: whether there are identifiable counterparties, reachable exchanges, or legal footholds that could support real-world recovery.

Setting realistic expectations is part of the initial evaluation. An experienced cybercrime lawyer will explain that some cryptocurrency fraud cases are heavily constrained by jurisdiction, anonymity, or the sophistication of the laundering techniques used—but that a methodical review is the only way to know what might still be possible.

3. Blockchain Analysis and Asset Tracing

For many cryptocurrency-enabled investment fraud cases, the blockchain itself is a primary source of evidence. Even though wallet addresses do not include names, the transparent, append-only nature of most blockchains allows cybercrime lawyers and their forensic partners to trace how funds move after they leave your control.

Using blockchain analytics tools and open-source explorers, the investigation team will:

Follow outgoing transfers from your wallets or exchange accounts to the first receiving addresses.
Map subsequent “hops” as funds move between wallets, sometimes through dozens of intermediate addresses.
Identify points where stolen assets are sent to centralized exchanges, swap services, or known high-risk services such as mixers.
Flag clusters of addresses likely controlled by a single scam operation.

In more complex cases, a cybercrime lawyer may engage blockchain forensics experts who specialize in clustering addresses, deanonymizing patterns, and correlating on-chain activity with data from prior cases or commercial databases. The presence of privacy coins, mixers, or cross-chain bridges can make tracing more difficult, but even partial tracing can be valuable: it may identify where to serve legal requests, which exchanges may hold related accounts, or whether funds are still sitting, frozen, in identifiable wallets.

The output of this phase is typically a structured tracing report that connects your original transactions to downstream addresses, exchanges, or services. That report becomes a foundation for engaging financial institutions, drafting subpoenas, and coordinating with law enforcement.

4. Working With Exchanges and Financial Institutions

Once a cybercrime lawyer has mapped the likely path of your funds, the next step is often to engage exchanges and other financial institutions where those funds appear to have landed. While not every platform will cooperate, many reputable exchanges have compliance teams that respond to well-supported reports of cryptocurrency fraud.

This engagement usually includes:

Submitting detailed fraud reports that include TXIDs, wallet addresses, timestamps, and any supporting screenshots or chat logs.
Requesting that the exchange flag or freeze accounts associated with the crypto scam, especially where funds appear to remain on the platform.
Invoking the exchange’s Know Your Customer (KYC) obligations, which may allow them to identify account holders or share limited information when presented with appropriate legal process.

When traditional banking channels were involved—wire transfers, card payments, or payment services used to fund crypto purchases—a cybercrime lawyer may also contact those institutions. In some cases, banks or card issuers can initiate recalls, flag suspicious patterns, or provide documentation that later supports legal action or regulatory reporting.

The effectiveness of this step depends heavily on timing, documentation quality, and the jurisdictions involved. Even when exchanges cannot immediately freeze or return funds, their logs and KYC records often become crucial evidence for later subpoenas, court orders, or law enforcement referrals.

5. Legal Tools: Subpoenas, Court Orders, and Civil Actions

Where initial outreach and voluntary cooperation are not sufficient, formal legal tools come into play. A cybercrime lawyer assesses which courts and jurisdictions can assert authority over key parties—such as exchanges, intermediaries, or identifiable individuals—and then chooses appropriate procedures.

Common tools include:

Subpoenas to exchanges or financial institutions, seeking account-holder information, transaction logs, IP logs, and other data that ties on-chain activity to real-world identities.
Court orders for account freezes, where local law allows judges to direct exchanges or banks to hold assets pending further proceedings.
Civil lawsuits against identifiable scammers, intermediaries, or negligent entities, tailored to the facts and legal theories applicable in the relevant jurisdictions.

In some cases, civil and criminal processes run in parallel. A cybercrime lawyer may coordinate with prosecutors while also pursuing civil discovery or asset-freeze orders designed to preserve whatever is left of the stolen funds. At every step, there are limitations: some exchanges are offshore and unresponsive; some assets are already moved beyond reach; and legal proceedings can be costly and time-consuming. Part of the lawyer’s role is to help weigh the likely benefits against these constraints.

6. Collaboration With Law Enforcement

Cryptocurrency fraud often crosses borders and involves organized networks, so law enforcement involvement is an important part of many cases. A cybercrime lawyer typically does not replace law enforcement, but instead works alongside agencies to present clear, usable evidence and advocate for the victim’s interests.

This collaboration can include:

Preparing organized evidence packages for agencies such as the FBI, SEC, or equivalent national cybercrime units.
Providing tracing reports, transaction summaries, and narrative timelines that make technical details accessible to non-specialist investigators.
Following up on case numbers, sharing new intelligence, and helping coordinate between multiple jurisdictions when necessary.

Law enforcement may focus on building criminal cases against large pig butchering scam networks or crypto scam rings, while the cybercrime lawyer focuses on civil recovery, asset protection, and victim representation. In some situations, a successful criminal investigation or international law enforcement operation can create new recovery opportunities that did not exist when you first reported your loss.

7. Technical Investigation Beyond the Blockchain

While blockchain analysis is central, many investigations require technical work away from the ledger. Cybercrime lawyers often collaborate with cybersecurity and digital forensics professionals to build a fuller picture of who is behind a scam and how it operated.

Key areas of focus include:

Communication logs and metadata from messaging apps, email, and social platforms, which may contain IP addresses, device information, or other identifiers.
Platform infrastructure, such as domain registration records, hosting providers, SSL certificates, and code similarities between scam sites.
Device forensics when remote access, malware, or keylogging is suspected, to determine what data was exposed and whether the compromise is ongoing.

These technical findings can support both civil and criminal efforts by tying your specific crypto scam to broader patterns—showing, for example, that a fake platform has victimized many people in multiple countries, or that a particular wallet cluster has been flagged in prior investigations. The more comprehensive the technical picture, the easier it is for courts and agencies to see the case as part of a serious, organized fraud problem rather than an isolated dispute.

8. What Clients Should Expect During an Investigation

Even a well-run cryptocurrency fraud investigation is rarely quick. A cybercrime lawyer will typically set expectations around timelines, communication, and costs early in the engagement.

Timelines can range from weeks to many months, depending on how many exchanges, institutions, and jurisdictions are involved. Some steps—such as initial evidence review and basic tracing—may move quickly. Others, such as obtaining responses to subpoenas or navigating foreign legal systems, can be slow and unpredictable.

Throughout the process, you should expect:

Periodic updates on milestones (e.g., tracing completed, reports filed, responses received).
Clear explanations of any significant strategic decisions, such as whether to pursue litigation.
Transparency about how investigation expenses—such as expert fees and court costs—are accruing over time.

Setbacks are part of many crypto scam investigations. Tracing may hit dead ends; exchanges may decline to cooperate; or jurisdictional issues may limit what courts can do. A cybercrime lawyer’s role includes not only pursuing every reasonable avenue, but also explaining when the cost-benefit balance suggests closing a particular path.

9. Outcomes: Recovery, Freezing, and Other Results

Not every cryptocurrency-enabled investment fraud investigation ends with a full refund, but there are several possible outcomes that may still be meaningful.

In some cases, particularly where funds are caught early on a cooperative exchange, it may be possible to freeze and partially or fully recover assets. In others, the best achievable result may be a partial recovery, where only a portion of the stolen funds can be traced to reachable accounts.

Even when direct recovery is not possible, investigations can lead to:

Freezing funds before additional transfers occur, protecting you or other victims from further loss.
Identifying responsible parties, supporting criminal cases or future enforcement actions.
Non-monetary benefits, such as clarity about what happened, documentation for tax or insurance purposes, and contributions to broader law enforcement efforts against pig butchering and other crypto scams.

A candid cybercrime lawyer will discuss these potential outcomes upfront and revisit them as new information emerges, so you are not left with unrealistic expectations.

10. When an Investigation Does Not Lead to Recovery

There are situations where, despite skilled work and careful tracing, no realistic recovery path exists. Privacy-focused cryptocurrencies, mixer-heavy laundering, long delays before reporting, and hostile jurisdictions can all make it effectively impossible to identify assets or hold specific entities accountable.

When that happens, a cybercrime lawyer’s job shifts from “finding a way to bring money back” to helping you:

Understand why the case cannot go further, in clear, non-technical terms.
Evaluate whether any limited, residual options remain (for example, regulatory complaints, insurance notifications, or tax treatment discussions with your tax advisor).
Avoid throwing good money after bad on additional legal or investigative efforts that are unlikely to change the outcome.

Honest conversations about limits are a hallmark of reputable cybercrime lawyers. Even when the result is not what anyone hoped for, a structured investigation can still provide closure and help you recognize and avoid future crypto scam attempts.

Conclusion: Cybercrime Lawyers Use Technical and Legal Tools Together

From initial evidence review to blockchain tracing, exchange engagement, and coordination with law enforcement, a cybercrime lawyer brings both technical understanding and legal strategy to bear on cryptocurrency-enabled investment fraud. The process is structured, methodical, and grounded in the realities of what today’s tools and courts can—and cannot—achieve.

If you believe you have been targeted by a pig butchering scam, crypto scam, or other cryptocurrency fraud, the most important steps are to secure your accounts, preserve your evidence, and avoid secondary “recovery” scams that make unrealistic promises. Once you have taken those immediate actions, consider scheduling a consultation with a cybercrime lawyer or cryptocurrency fraud attorney to review your case. An experienced lawyer can help you understand your options, prioritize your next moves, and decide whether a formal investigation is likely to be worthwhile in your situation.