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5. Notify Cryptocurrency Exchanges and Platforms
Report the incident to any exchanges or platforms involved in the transaction. It’s usually easy to
file a report, although there is no guarantee that an exchange will take action unless your report
is supported by legal filings and or law enforcement. Once an exchange takes action they may
freeze the suspect’s accounts. They will have a know your customer file for the fraudulent account
and through an application to the court they can release that to your legal counsel. This file will
also contain data bout where your funds were moved if it left the exchange.
6. Report to Law Enforcement Agencies
File a detailed report with local police and national agencies specializing in cybercrime. This varies
depending on where in the world you are. One example is the FBI’s Internet Crime Complaint
Centre (IC3) in the United States, or ActionFraud in the UK.

Law enforcement can initiate investigations, collaborate with international agencies, and
potentially recover stolen assets. In the short term, law enforcement is your best option for a quick
freezing of exchange accounts. Your chances of getting good response from law enforcement will
increase if you are able to provide comprehensive evidence.

7. Appoint Legal Counsel Specializing in Cryptocurrency
Appoint a firm with extensive expertise in dealing with cryptocurrency and financial fraud. Such a
firm is not always easy to find. They can help you assess the situation and guide you through the About the Author
best strategies for asset recovery, including interacting with exchanges
Björn Wahlström is the CEO
of Hong Kong-based risk
Engage an Investigative Firm with blockchain tracing capabilities management firm Sphere
Crypto investigators like Sphere State Group use proprietary tools to analyze blockchain State Group (formerly
transactions, identify patterns, and trace funds across wallets and exchanges and try to find clues Current Consulting Group).
as to the fraudster’s identity. We can help you write a report to facilitate reports to legal counsel, Björn is an asset recovery
law enforcement, and insurance carriers.
specialist with 20 years
of experience in Asia and
Here’s what you can expect from a strong crypto trace firm:
has extensive experience
in risk management,
• Advanced Blockchain Analysis: crisis management and
Investigators use specialized software such as Elliptic or Chainalysis to follow the trail of your investigations. He has
stolen cryptocurrency. They can navigate obfuscation techniques like mixing services.
personally delivered
projects around Asia as
• Identifying Wallets and Exchanges: well as in Europe and the
They can pinpoint the wallets where your funds were transferred and identify exchanges where U.S. He has a track record
the fraudster may have converted crypto to fiat currency. Those are the points to bring to the in successful recovery for
attention of legal counsel, who as described above can help you freeze such accounts.
sensitive industries and
difficult situations, including
• Gathering Admissible Evidence: several high-profile
A forensic report can be used in legal proceedings and can significantly strengthen legal cases cases involving internal
or law enforcement investigations.
corruption, whistleblower
cases, and factory sieges.
• Collaboration with Authorities: Björn is a board-certified
Investigators can work alongside law enforcement, providing technical insights that may not investigator, certified
be readily available to agencies.
crypto investigator, and
an experienced expert
witness. He’s a frequent
Next Steps speaker on topics of risk in
Once you’ve received the initial reports back from legal counsel and or your investigator, you will Asia, compliance, and asset
need to reflect on the potential for recovery (partial or full). You will also need to consider how you recovery.
will fund your recovery efforts, and what an acceptable timeline for recovery would be.

If you have any further questions or you need assistance with a cryptocurrency issue, please
contact: bjorn@spherestate.com

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