FBI Issues Warning About ‘Fictitious Law Firms’ Targeting Crypto Scam Victims
August 14, 2025
The U.S. Federal Bureau of Investigation (FBI) has issued a new public alert cautioning victims of cryptocurrency scams about so-called “fictitious law firms” that prey on individuals seeking help to recover lost funds. This advisory comes amid rising concerns over fraudsters exploiting those already victimized by crypto scams.
In its latest notice released on Wednesday, the FBI detailed how these sham legal entities or individuals posing as lawyers specifically target people who have suffered losses from crypto-related crimes. The bureau warns that in reaching out to such victims—often unsolicited—these scammers aim to extract additional payments or sensitive personal information, compounding the victim’s losses and risks.
How the Scams Work
According to the FBI, these fake law firms typically offer to assist with the recovery of stolen cryptocurrency. However, they frequently request upfront payments or demand fees in the form of cryptocurrency or prepaid gift cards. The bureau stresses that any unexpected contact from a law firm, especially if the victim has not previously reported their case to law enforcement, should be treated with caution.
“Be cautious of law firms contacting you unexpectedly, especially if you have not reported the crime to any law enforcement or civil protection agencies,” the FBI’s notice advises. It further recommends verifying the credentials of any legal professional before sharing personal details or sending money.
A Growing Problem Amid Huge Crypto Losses
The warning follows similar advisories from the FBI in August 2023 and June 2024, signaling an ongoing and escalating issue. Data from blockchain security firm CertiK reveals that approximately $2.5 billion in cryptocurrency was lost due to hacks, exploits, and scams in the first half of 2025 alone. While some exchanges and companies have been able to recover portions of funds for affected users, many victims remain without recourse and vulnerable to opportunistic scams.
Law Enforcement Efforts and Additional Threats
The FBI plays a leading role in investigating crypto-related fraud, theft, and seizures within the United States. U.S. Treasury Secretary Scott Bessent recently noted that digital assets seized by authorities are earmarked to contribute to a national cryptocurrency reserve after victims are compensated.
For example, in April, the FBI office in Dallas confiscated $2.4 million worth of Bitcoin linked to alleged hacking activities. The federal government later filed a lawsuit seeking legal claims over those funds.
Beyond scams, some of the most disturbing crimes involving cryptocurrency holders include kidnappings of victims or their family members aimed at extorting digital assets or ransom payments. Alena Vranova, founder of SatoshiLabs, has estimated that at least one Bitcoin user is targeted by such threats somewhere in the world each week.
Protect Yourself:
- Verify any law firm or attorney’s credentials before engaging.
- Avoid sending payments in cryptocurrency or prepaid gift cards.
- Report crypto crimes promptly to recognized law enforcement agencies.
- Be skeptical of unsolicited offers for “crypto recovery” services.
As the crypto ecosystem continues to mature, awareness and vigilance remain crucial for protecting investors from layered scams that seek to compound initial losses. The FBI’s ongoing warnings shed light on the importance of carefully vetting legal assistance and maintaining caution in the often complex landscape of crypto fraud recovery.
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