Are Crypto Recovery Companies Legit? Red Flags to Avoid

Most “crypto recovery” offers are fake

If someone promises guaranteed results or asks for payment before helping, it’s almost always a scam.
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Legitimate recovery work falls into three real categories:

1. Recovering access to a wallet you already own (lost password / missing phrase).

2. Tracing stolen crypto (evidence only—not refunds).

3. Platform-specific exceptions like unsupported-deposit recovery.

And a core truth: blockchain transactions can’t simply be reversed.

What “crypto recovery” actually means

People use the phrase loosely, but here’s the clear breakdown:

Wallet access recovery (legitimate)

You still control the wallet but can’t open it. A professional uses your encrypted backup or corrupted seed material and tests your password or phrase guesses offline.

Tracing & forensics (legit, but not “getting your crypto back”)

An analyst tracks where your stolen crypto moved on-chain, identifies exchange touchpoints, and produces visual reports for police or platforms. This helps investigations—but doesn’t restore funds by itself.

Exchange or issuer exceptions (rare cases)

Some exchanges can fix unsupported deposits or wrong-network transfers. Certain stablecoin issuers can freeze tokens if authorities request it. These are edge cases, not standard “fund recovery.”

The fundamentals people never hear

Most blockchain transactions are irreversible

Once confirmed, they can’t be undone by wallets, exchanges, or recovery companies.

Non-custodial wallets mean you hold the keys

Your recovery phrase is the master key. Providers don’t store it and will never request it.

No government agency will charge you for recovery

Anyone claiming to be the FBI/FTC and demanding payment is running a scam.

What crypto wallet recovery actually is

Think of it like trying to unlock a safe you own—but you misplaced the combination.

A legitimate recovery technician will:

• Ask for your encrypted wallet file or backup.

• Use your best password/phrase guesses to attempt recovery offline.

• Never request a working seed phrase.

• Make it clear that success isn’t guaranteed.

There are even open-source tools advanced users try themselves—proof that access recovery is real, but limited to wallets you already own.

Even major wallet companies confirm they can’t restore lost non-custodial passwords or seeds and sometimes direct users to outside specialists.

Start password recovery
Only pay if we succeed — 20% fee.

What scam tracing actually is

Scam tracing builds a clear evidence trail—not a refund.

Investigators run your transaction through blockchain analytics tools to:

• Map the route stolen funds took.

• Identify exchanges that may hold the scammer’s KYC data.

• Generate reports for police, legal teams, or platforms.

This doesn’t send your crypto back to your wallet—but it enables law enforcement or exchanges to act when possible.

Outcomes depend on off-chain actors, not the tracing itself.

Stablecoin freezes

Some issuers (like USDC or USDT) can freeze tokens at flagged addresses—but only under strict policies or legal requests.

How to choose the right path If you lost a password or phrase

• Gather your wallet file and all password/phrase guesses.

• Choose providers who work offline and never request seeds.

• Expect “possible,” not “guaranteed,” outcomes.

If you were scammed or hacked

• Commission tracing to map fund flow.

• File an IC3 report and a local police report—using the tracing data as evidence.
  (Always type ic3.gov manually; fake sites exist.)

If you sent the wrong asset to an exchange

Check the exchange’s support page for “asset recovery.” Some cases are recoverable; others aren’t.

How to avoid the “re-victimization” scam

After a hack or scam, fraudsters often return pretending to be recovery agents or government officials.
They will:

• Ask for upfront payment, gift cards, or crypto.

• Request banking info.

• Use spoofed .gov sites or fake badges.

Never engage. Never pay.

FAQ — quick and clear

Are real crypto recovery companies out there?
Yes—companies that help you regain access to a wallet you already own. Anyone promising to reverse theft or asking for upfront payment is a red flag.

Can stolen crypto actually be recovered?
Usually not directly. What helps is tracing + law enforcement + exchange action.

What does a tracing report include?
A visual transaction map, exchange touchpoints, timelines, and exportable CSV/graph data.

Do wallet providers ever refer users to outside help?
Some do when dealing with locked wallets. But this does not apply to stolen funds.

How do I safely report a scam?
Go directly to ic3.gov. Save TX IDs, screenshots, and messages. Never share your seed.