Report the address of the scammer’s wallet
Depending on the nature of the scam, there are always some steps worth taking when finding a fraudulent wallet. On the Ethereum blockchain, numerous wallet addresses are flagged as fraudulent, primarily because they have been used for bad purposes. This is equally possible with other addresses, even if they are not always visible in the blockchain browser.
Passing on information from the wallet to exchanges and other service providers is a good place to start. Blockchain analytics firms can also be approached with relevant information. Although it is unlikely that the money will even be returned to the legitimate owner, it can ensure that no one else will fall victim to this scammer.
File a complaint with the police
Given the lack of active regulation of cryptocurrencies in many countries, it is very difficult to take action against cryptocurrency scammers. Filing a formal complaint with the police with all relevant information can be a good option, although no one should ever have high hopes of getting their money back this way. Most law enforcement agencies still consider bitcoin to be anonymous, although this is clearly not the case.
While these actions may not yield any real results, individual allegations could eventually lead to a large-scale investigation. If someone is arrested, there is a very good chance that the seized bitcoins will be auctioned off. This means that the stolen funds will be recovered. The victim of cryptocurrency theft, unfortunately, has no way of recovering the lost funds.
Tracking down the perpetrator
There will always be people who will go to extreme lengths to recover stolen cryptocurrency. Tracing a cryptocurrency user isn’t really that difficult, as information can be gathered all over the internet, especially if an online wallet is used to store the cryptocurrency.
However, it is not advisable to take matters into your own hands. There is no reason to engage in any illegal activity or action punishable by law to catch the thief, no matter how much money has been lost in the process. Referring the information to law enforcement agencies is, after all, the best course of action.
