Crypto Recovery Scam are on the rise and if you are a crypto investor or gambler, you know that managing your crypto wallet can be a bit difficult sometimes. You can keep your crypto in an exchange (Robinhood, Coinbase etc.) or you can have it stored in a crypto wallet. If this is the case, you know you will have a seed phrase (definitely do not tell this phrase to anyone!)

Then, depending if you are on some forums or simply on reddit, you can see from time to time some great opportunities around and you want to try them. This is great, but be careful of scammers! 

One recent client found the seed phrase from a scammer on Twitter. Our client knew that person was a scammer because, a day early, he got scammer from over $200 with a simple pump and dump from a crypto “shitcoin”, so, he thought it was simply a stupid mistake that forgot to hide his seed phrase from his crypto wallet. (Reminder, scammers are usually not stupid.) 

Anyway, our client took that seed phrase and loaded the wallet it was associated with. To his great surprise, there was some crypto on it! For around $600 worth of crypto, just sitting there. 

Our client thought it was going to scam the scammer, and transfer his crypto to his own wallet. But of course, he needed to load some crypto to that wallet to pay the gas fee for the transfer (classic thing to do), he load around $20 worth of ETH on the wallet and they disappear right away! He thought he may have done a mistake, so he tries again, and, one more time, his deposit of ETH disappear right away!

The scammer was using a smart contract on his wallet, to simply scam a second time anyone who thought he was stupid enough to leave his seed phrase out. That smart contract was transferring automatically the fresh ETH from his account to a second secure account. Not only our client lost $40 more dollars, but that did happen over 40 times in the past 24 hours!

At this time, our client was down for almost $250 in his first crypto scam journey. But this is not the end. He then searched online how to recover his funds, and found out about Crypto Recovery! To make it short, Crypto Recovery is simple scam. They will contact or be contacted by people that lost some crypto from scammers and are desperate to recover their money. Those scammers will tell them that for a small fee (or a percentage fee) they will be able to recover that crypto. 

Our client contacted one of those person, of course on Instagram, and of course, paid him $50 worth of Bitcoin for his job. I don’t have to tell you what happened next. He was down for almost $300 and contacted us to see if we were able to do anything for it. 

Unfortunately, there is almost no chance to recover your crypto. The best course of action is to not be to greedy and keep your seed phrase secured, don’t try to connect your wallet to anything or to random website that let you exchange or give you massive APR etc. You can also store your crypto investment in physical key (Crypto ledger) to make it a little bit more safe.