How AMLBot Investigators Traced Stolen Crypto from a Linkedin Investment Scam

As reported by Outlook India, we’ve successfully returned the majority of stolen Ethereum from a scam started on LinkedIn. The fraudulent investment scheme pulled just enough information from an Indian businessman to access the victim’s seed phrase. Our investigation team partnered with local cyber crime enforcement to track the stolen assets through multiple wallets and Defi bridges.

According to the Consumer Sentinel Network’s Data Book 2023, a report from the Federal Trade Commission (FTC), cryptocurrency was the second-highest reported financial loss for American consumers in 2023. Consumers who reported the FTC lost $1.41 billion. We’re building the tools to reverse this trend and bring transparency to the marketplace. If you’ve been a victim of scam, learn about our crypto recovery services here.

Collaboration with Law Enforcement

Law enforcement agencies worldwide are still developing processes for tracking stolen cryptocurrency. Many agencies may not have access to or knowledge of legitimate crypto recovery companies. Luckily, the victim is one of our clients.

He reached out immediately after grasping the scope of the proposed $1,000,000 investment opportunity scam. We joined forces with Bangalore’s Whitefield Cyber Cell as cryptocurrency private investigators. This public-private partnership offered the victim a chance to recover as much of their 45 ETH loss.

“When I realized the magnitude of the scam, I felt utterly hopeless. But the prompt action taken by AMLBot and the Whitefield Cyber Cell not only recovered the majority of my funds but also somewhat my faith in the legal process.” - Victim

We used our blockchain analytics tools to trace the thief’s escape route through various exchanges, wallets, and platforms. Our Head of Investigations led training sessions with Whitefield Cyber Cell to give them the practical concepts they’d need to help in this and future cases.

Also see, proactive steps to take when crypto assets are lost or stolen to get a solid foundation on steps you can take when you are a victim of a cryptocurrency scam. Our investigation led us to reach out to platforms like SimpleSwap, ChangeNow, Changelly, and Chainup to seek cooperation in blocking the victim’s stolen assets.

At the time of writing, SimpleSwap and ChangeNow were able to administer an immediate return of $60,000, and another $10,000 is currently being processed from various platforms. This collaboration is exactly what we’re hoping to develop for a more trustworthy cryptocurrency global marketplace.

Blockchain Analytics Tool for Compliance Teams & Law Enforcement

Cryptocurrencies use blockchain technology for efficient and transparent transactions. To avoid potential scammers and theft, AMLBot employs a number of blockchain analytics tools to help protect your assets.

By monitoring and analyzing blockchain transactions, we can identify and flag suspicious activity. We’re helping prevent some of the most common fraud schemes using crypto, such as money laundering, fraud, and trafficking. All these illegal activities harm the integrity of the cryptocurrency markets.

Insights gained through blockchain analysis help stakeholders make more informed decisions, optimize their strategies, and mitigate risks. According to a survey from Synechron, 94% of fintech companies plan to adopt blockchain initiatives in the near future.

Partnering with Law Enforcement

We’re compliance and blockchain forensics experts for crypto businesses, individual investors, and law enforcement investigators. We’ll help you analyze risk before transactions and partner with you to reclaim stolen assets.

Collaborating with local law enforcement, as we did with Whitefield Cyber Cell, emphasizes the important role they can play in protecting victims in the crypto space.

As our Head of Investigations said, “Public-private partnerships play a crucial role in the success of investigations and recovery efforts.”

How to Recover Stolen Crypto

Digital crimes aren’t always visible or obvious at first. But criminals have identified crypto as a target for phishing schemes among other fraudulent tactics. So, what should you do to recover lost crypto? Here’s a recap of the steps to take when your crypto assets are stolen:

1.     Understand the situation.

2.     Reach out for support.

3.     Report to the proper authorities.

4.     Employ blockchain forensics.

5.     Implement security measures.

To begin assessing your situation, monitor your balance. For example, you may be a victim of theft if you notice a sudden or dramatic drop when you haven’t authorized a recent transaction. Additionally, keep an eye on crypto industry news for trends on attacks and recent security breaches.

As soon as you think a theft has occurred, contact your wallet or exchange provider. Maintain and share your own records of how much was stolen and when. While many providers take a proactive approach to recovering stolen assets, don’t hesitate to reach out to ensure the process is ongoing.

In the FTC’s 2023 report, American consumers reported 47,537 cases of fraud involving stolen cryptocurrency. Notably, not every report of fraud is reported. Involving the proper authorities shows law enforcement agencies on various levels the scale of fraud that can occur in crypto markets, which incentivizes them to invest more in the tools they need to recover lost assets.

Investigating cryptocurrency theft on the blockchain involves specialized forensic tools and data science knowledge. Cryptocurrencies leave a unique trail across the blockchain for investigators to follow. Bad actors and fraudsters often move the stolen assets through a variety of channels as quickly as possible to cover their footsteps. Professional investigators, like us, can work to track the digital breadcrumbs and contact the exchanges necessary.

Implementing security measures can help protect your assets. After experiencing a crypto theft, you should consider replacing the device used to store your crypto, strengthen your passwords, and review any accounts connected to your wallet or exchange.

AMLBot’s Investigation Department

We’ve built AMLBot Pro, an innovative tool for blockchain investigation that helps to meet compliance regulatory requirements. This tool lets you visualize a complete picture of the risk of your cryptocurrency transactions.

Our Investigations Department is already helping a lot of victims recover their lost assets. AMLBot Pro tool gathers data from open-source and on-chain databases to use real-time screening and continuous tracking to scan for suspicious activity and known accounts on critical watchlists.

We support compliance and investigations teams with AMLBot Pro to improve trust in cryptocurrency markets.