Over $295k in Stolen Funds Recovered Through Cooperation with US Law Enforcement
The continued rise of crypto fraud highlights the importance of joint efforts between crypto platforms and law enforcement. Effective cooperation allows suspicious activity to be identified quickly and funds to be intercepted before they are moved further.
In this report, we share two recent US cases where collaboration made it possible to recover approximately $295,000 in stolen assets and return them to victims.
Case 1: Approx. $185k Recovered in Cooperation with Oconto County Sheriff’s Office
The victim was scammed into making a series of progressively larger transactions under the promise of investment returns. Eventually, they lost nearly $185,000 when the fraudster disappeared. The recovery unfolded as follows:
- ChangeNOW received an internal report about the stolen funds.
- Our compliance team immediately adjusted AML settings and enabled enhanced monitoring.
- When the attacker attempted to exchange the stolen crypto, the transaction was automatically flagged and placed on hold.
- A manual review confirmed the fraud, with no false positive.
- The Oconto County Sheriff’s Office, with assistance from the Wisconsin Department of Justice-Division of Criminal Investigation quickly confirmed the wallet was part of their active investigation.
- After legal procedures were completed, the funds were returned to the victim.
We regularly share cases of successfully recovered stolen funds. For example, we recently highlighted a high-stakes recovery where nearly $5 million in crypto was returned to its rightful owner thanks to rapid detection and coordinated action with U.S. authorities.
Case 2: $110k Recovered in Partnership with Brooklyn Park Police Department
In this case, the victim was compromised through a phishing link exploit, which exposed their wallet. Around $110,000 was transferred to the attacker’s address. Here’s how the case was resolved:
- ChangeNOW received an internal report of the theft.
- Our team updated AML rules to track the wallet and enabled alerts.
- When the fraudster attempted to exchange the stolen funds, the transaction was flagged and frozen.
- Manual review confirmed the case was valid, not a false positive.
- ChangeNOW reported the incident to the Brooklyn Park Police Department, who verified the wallet was already under investigation.
- After the legal process, the funds were returned to the victim.
How These Scams Work
Both cases highlight two of the most common schemes we encounter.
1. Investment Scams
Here’s how it usually happens: the scammer convinces the victim to send a small “test” transaction and shows fabricated profit results. Trust builds quickly. Step by step, the amounts increase, with victims pressured into sending larger sums to “unlock higher returns.” Eventually, the fraudster disappears with everything.
2. Phishing Attacks
The victim receives a message, email, or link that looks legitimate often impersonating a known exchange or wallet provider. The fake site asks for login details or seed phrases. Once entered, the attacker gains full control of the wallet and drains it, often laundering the funds across multiple services.
Red Flags: How to Spot a Scam Before It Happens
Many victims later say the signs were there – but easy to miss in the moment. Here are the red flags that should make you stop and double-check:
- “Guaranteed” returns – always treat such claims with caution.
- Pressure to act fast – urgency is a hallmark of fraud.
- Requests for seed phrases or private keys – this is never safe.
- Unfamiliar links or apps – always verify the domain or source.
- Too good to be true offers – they always are.
Spotting just one of these signs is enough to pause and verify before moving any funds.
The Bigger Picture: Crypto Fraud on the Rise
According to the FTC, U.S. consumers lost $5.7 billion to investment scams in 2024 – more than to any other type of fraud.
Chainalysis estimates that up to $12.4 billion in cryptocurrency was stolen through authorized push payment (APP) scams in 2024, where victims are deceived into willingly transferring funds.
Fraud is becoming more sophisticated, which makes rapid response and strong compliance cooperation essential. These figures show the scale of the challenge. But while the numbers are daunting, individual action still matters – especially when taken quickly.
When to Reach Out Immediately
If you:
- Entered wallet details on a suspicious site,
- Fell for a phishing message,
- Were pressured into sending funds by someone impersonating “support” or “law enforcement,”
- Or noticed unauthorized movements of your funds —
Contact us at compliance@changenow.io.
The sooner you act, the higher the chances of stopping fraud and recovering funds with law enforcement support.
Final Notes
Every case shows the same truth: speed and cooperation matter. With fast reporting, robust AML systems, and law enforcement support, stolen funds can be recovered.
At ChangeNOW, we do not keep frozen assets and do not profit from fraud. Our mission is to help victims reclaim what’s theirs and make crypto safer for everyone.
More Cases
Explore additional cases of successfully recovered funds on our blog. Our mission is to thoroughly document these cases and provide valuable insights and guidance on how individuals can safeguard their assets and protect themselves from potential risks.
For example, in a recent case, we detailed how over $200,000 in stolen crypto was recovered with the assistance of the Singapore Police Force, highlighting the importance of swift international cooperation and robust monitoring systems.
