Many believe that recovering stolen crypto funds is a lost cause. However, AMLBot, with its proven expertise in handling such cases, is here to debunk this myth.
AMLBot was contacted by a client with the request to investigate the loss of 650 000 USDT from its business wallet.
During the investigation, AMLBot detected that the stolen funds were divided into three leading wallets, one of which was identified as a licensed crypto exchange on the blockchain analytics tool, while two other wallets had no identification. Our team examined the transaction patterns and eventually identified both wallets. The investigation result showed that the addresses belonged to licensed exchanges. The client reached out to law enforcement with our report to officially start the investigation and request account holder details. The exchanges that received a major portion of the stolen funds were surprised by our team's findings as this information was private. The exchange's compliance team reviewed the on-chain analysis and investigation reports we submitted and agreed to cooperate.
The investigation uncovered that the security personnel of a police department visited by one of the partners for a completely unrelated matter weeks ago was involved. As per the security measures, The client had to leave his phone with the security personnel when visiting the police station. During this time, the perpetrator gained custody of a partner's phone for 15 minutes and gained access to his private keys. The perpetrator later gained unwarranted access to the partner's wallet and transferred the funds to his wife's crypto wallets on the previously mentioned exchanges and to his cold storage wallet. After arresting the individual, law enforcement apprehended the culprit and seized the assets from an exchange and the cold wallet. All of the stolen funds were returned to the business owners.
As a result of the story, it is possible to investigate and return stolen crypto funds if the proper method is chosen. This case is also a stark reminder of the critical role that thorough investigations and collaboration play in the crypto world. More importantly, it underscores the absolute necessity for robust security measures to prevent such incidents from happening in the first place.