How Cryptocurrency is Stolen and Whether a User Can Recover it Independently.

Recovering stolen cryptocurrency independently, without a specialized company, is challenging for several reasons:

1. Lack of Detailed Analytics

Successful recovery of stolen funds requires in-depth analytics and investigation, including the collection of all traces and evidence. Without this, the police cannot effectively investigate the case. Specialist firms leverage advanced blockchain intelligence platform technology to provide the necessary data.

2. Police Inaction and Case Backlogs

Even if an individual can gather the necessary documents and evidence, the police may simply not take action, and the case can get lost among hundreds of others. This is a common practice that significantly complicates the task of recovering stolen funds.

Useful documents and evidence include:

• Transaction history from addresses associated with the theft.
• Screenshots or statements from wallets, exchanges, and other platforms where suspicious transactions occurred.
• Documents confirming ownership of the cryptocurrency, such as blockchain records or confirmations from exchanges.
• Emails, messages in messengers, or forum posts related to the fraud.
• Correspondence with technical support of exchanges or crypto platforms where transactions took place.
• Logs or data from software that may show signs of hacking or fraud.
• Access records, IP addresses, and other network data that can help determine the source of the attack.
• Messages or publications on social media that can confirm facts of fraud.
• Official reports from platforms or services confirming the incident.
• Expert conclusions from cybersecurity specialists or forensic analysts who can provide incident analysis.

3. Lack of Understanding by State Authorities

Government agencies often lack expertise in the specifics of working with cryptocurrencies and require specialist assistance for incident analysis and establishing effective interaction with various market participants.

The company's specialists help organize the process and work in the following ways:

• Prepare Blockchain Investigations: Conduct in-depth analysis of transactions and assets on the blockchain to identify traces of illicit activity.
• Assist Law Enforcement Agencies: Help prepare requests to Virtual Asset Service Providers (VASPs) to obtain information about deposit addresses and asset freezing.
• Liaise with VASPs: Organize and manage communication with cryptocurrency platforms to obtain necessary responses and information.
• Analyze VASP Responses: Process the received data and provide recommendations for further requests or actions.
• Assist in Preparing Court Orders: Support in preparing court decisions for the seizure and attachment of assets held on VASP platforms.
• Draft Conclusions and Conduct Special Studies: When necessary, perform supplementary research and draft conclusions for inclusion in the criminal case files.
• Address Tagging: Classification and labeling of cryptocurrency addresses according to various categories to simplify the analysis and investigation process.

Popular Cryptocurrency Theft Methods

• Social Engineering: This method involves manipulating users to obtain confidential information or perform unauthorized actions. Scammers often impersonate official representatives of exchanges, wallet developers, or other trusted entities to trick users into revealing their keys (seed phrases, private keys) or executing a transaction to the scammer's address.
• Phishing Websites: Scammers create fake copies of popular crypto exchanges or wallets. A user enters their credentials on such a site, and they are immediately intercepted. One of the most dangerous types of phishing is Crypto Drainers.
• Drainers: This is malicious code embedded in a phishing site that doesn't just steal a password but automatically initiates a transaction, requesting permission for full access to assets (e.g., tokens and NFTs). Once the user signs the transaction, the wallet is completely "drained" in seconds.
• Fraudulent Investment Platforms: Users are offered ultra-high-yield cryptocurrency investments through supposedly legitimate platforms. These are often "pump-and-dumps" or Ponzi Schemes, where early investors' returns are paid using funds from new deposits. Once enough money is collected, the platform disappears. Signs of fraud include: unrealistically high yield promises, lack of public licensing, and an anonymous team.
• Insecure Wallets and Exchange Hacks: Centralized Exchanges (CEXs) can be hacked due to vulnerabilities in their security, but more often, user assets are leaked due to weaknesses on the user's side.

How to Protect Your Cryptocurrency?

Use Cold Wallets (Hardware Wallets)

Hardware wallets, such as Ledger and Trezor, store private keys offline. This is the most secure method because the keys do not interact with the internet, making them invulnerable to most online attacks, including phishing and drainers.

Always Use a VPN

A VPN (Virtual Private Network) encrypts your internet connection. This is especially important when using public Wi-Fi. On unsecured networks, scammers can perform a Man-in-the-Middle (MitM) attack to intercept your data, logins, passwords, and even keys.

Be Cautious with QR Codes

Malicious actors mask harmful links in QR codes (this is called Quishing). You might scan a code, thinking it leads to an official website, but actually land on a phishing page or download malware. Always check the address after scanning.

2FA: Only via Authenticator App

Two-Factor Authentication (2FA) via SMS is an outdated and insecure method. SIM-swapping allows an attacker to gain control of your phone number and intercept the code. Use authenticator apps (Google Authenticator, Microsoft Authenticator, Proton Authenticator) or, for maximum security, FIDO hardware keys.

What to Do if Your Cryptocurrency is Stolen?

1. Gather Evidence: Collect all the documents mentioned above: transaction history, screenshots, correspondence, etc.
2. Contact Specialized Organizations: Contact organizations that specialize in cryptocurrency crime investigations for additional support, such as Match Systems.
3. Report to the Police: Report the crime to the local police to open a criminal case.
4. Flag Stolen Funds: Flag the addresses to which your assets were stolen to hinder their further movement and help track the movement of your stolen crypto.

Additionally, move any remaining funds to new wallets and change the passwords for all your cryptocurrency accounts.

Match Systems offers AI Crypto Officer—a tool for instantaneous reaction to crypto crimes.

The system automatically analyzes incidents, confirms the connection between addresses and fraud, tags the perpetrators' addresses, and distributes these tags across the entire ecosystem—to exchanges, wallets, DeFi, analytical platforms, and blockchain explorers.

What previously took hours or even days now happens in 10–15 minutes—giving a chance to stop the withdrawal of funds before they disappear.

Then, the AI Crypto Officer generates an incident report—complete with the transaction chain, amounts, and involved addresses—and prepares templates for submissions to the police and other organizations. The user receives a clear, step-by-step action plan and notifications if the stolen assets begin to move.

AI Crypto Officer works even with small cases—starting from $100—and creates an open protection network where data about fraud is available to all participants.