Report Fraud

Report Fraud
If it happened to you, you are not alone. Here is exactly what to do. -The Chain Keeper

🫁 FIRST — BREATHE. THEN ACT FAST.

Discovering that your crypto has been stolen is a shock. The kind that makes it hard to think clearly. That's normal and human.

But the next few hours matter. Here is what to do immediately:

  • Do not send any more crypto anywhere until you understand what happened
  • Do not engage further with whoever contacted you. Hang up, close the chat, stop responding.
  • Do not share your seed phrase with anyone trying to "help you recover" your funds; this is almost certainly a second scam targeting you as a victim.
  • Screenshot everything: the website you were on, the chat conversation, any phone numbers, any wallet addresses shown to you.
  • Write down the timeline while it is fresh– what happened, when, in what order.

Time matters because some exchanges and platforms can flag wallet addresses faster if reported quickly. The sooner you document and report, the better.

📸 DOCUMENT EVERYTHING BEFORE YOU REPORT

Good documentation makes your reports credible and actionable. Here is what to gather:

The incident:

  • Date and time of the theft
  • How it happened: phishing site, phone call, fake support chat, social media, other
  • Any phone numbers used by the scammers
  • Any websites or URLs involved– check your browser history
  • Screenshots of any communications

The stolen assets:

  • Which cryptocurrencies were taken
  • Approximate amounts and values at time of theft
  • Which wallet or exchange they were taken from

The blockchain evidence:

  • Transaction IDs (hashes) for the outgoing transfers– find these in your wallet's transaction history or on a blockchain explorer
  • The destination wallet addresses where your funds were sent
  • Timestamps of each transaction

The blockchain records everything permanently. Every transaction has a timestamp, a sending address, a receiving address, and a transaction ID that is publicly verifiable forever. This evidence cannot be altered or deleted, and it is exactly what investigators need.

🔍 HOW TO TRACE YOUR STOLEN FUNDS

Before filing reports, trace where your funds actually went. This takes 15-30 minutes and dramatically strengthens every report you file.

For Ethereum and ERC-20 tokens (ETH, LINK, SHIB, etc.):

  • Go to etherscan.io (type directly)
  • Paste your wallet address or transaction ID in the search bar
  • Click on outgoing transactions to see the destination addresses

For Bitcoin:

  • Go to mempool.space (type directly)
  • Paste your wallet address or transaction ID
  • Follow the trail of outgoing transactions

For XRP:

  • Go to xrpscan.com (type directly)
  • Paste your XRP address to see transaction history

For Polygon/MATIC:

  • Go to polygonscan.com (type directly)

For Solana:

  • Go to solscan.io (type directly)

For HBAR:

  • Go to hashscan.io (type directly)

For each stolen asset note:

  • The transaction ID (hash)
  • The destination wallet address
  • The timestamp
  • The amount

These details go into every report you file and are the most actionable information investigators can receive.

🤖 USING AI TO BUILD YOUR FORENSIC REPORT

One of the most powerful things you can do after crypto theft is build a professional forensic report, and AI can help you do it even if you have no technical background.

Tools like Claude (claude.ai) (type directly) can help you:

  • Organize your incident timeline clearly and chronologically
  • Interpret blockchain transaction data from explorers
  • Identify destination wallet addresses and trace where your funds went
  • Draft a professional forensic report suitable for submission to law enforcement agencies
  • Write concise accurate descriptions tailored to each agency's specific reporting forms

How to use AI for your forensic report:

  1. Open a new conversation with Claude at claude.ai
  2. Describe what happened in as much detail as you can
  3. Share the transaction IDs and wallet addresses you found on the blockchain explorers
  4. Ask Claude to help you organize everything into a formal report
  5. Review, edit, and add your personal details
  6. Export as a PDF to attach to your agency reports

ChainReady was built using exactly this process. Our founder worked with Claude to trace stolen assets across multiple blockchains, identify destination wallets, document a Bitcoin consolidation sweep involving nine victim addresses, and file with eight agencies in a single day. The blockchain never forgets, and with AI assistance, neither will your report.

🚨 THE AGENCIES — WHO TO REPORT TO AND IN WHAT ORDER

File with every agency on this list. Each one serves a different purpose and collectively they build the strongest possible case.

1. FTC — Federal Trade Commission reportfraud.ftc.gov (type directly) Your first stop. The FTC collects fraud reports and shares them with law enforcement agencies across the country. Filing here creates an official record and feeds into national fraud tracking databases.

2. FBI IC3 — Internet Crime Complaint Center ic3.gov (type directly) The FBI's dedicated cybercrime reporting portal. Crypto theft is taken seriously here, especially when the loss is significant or involves organized criminal operations. Include your full forensic report and all transaction details.

3. CFTC — Commodity Futures Trading Commission cftc.gov/complaint (type directly) The CFTC has jurisdiction over cryptocurrency fraud involving digital assets. Select "digital currencies" as the financial product. Include your transaction IDs and destination wallet addresses.

4. SEC — Securities and Exchange Commission sec.gov/tcr (type directly) Relevant when fraud involves investment schemes or impersonation of financial platforms. The SEC's tips and referrals system connects to active enforcement teams.

5. Your State Attorney General Search "[your state] attorney general consumer complaint" (in your browser) Most state AGs have consumer protection divisions that handle fraud. Some have dedicated crypto fraud units. Your state AG can pursue cases that federal agencies may not prioritize.

6. Local Police Department File an online or in-person report with your local police department. You will likely need a police report number for insurance claims or civil legal action. Many departments now have cybercrime units.

7. Chainabuse chainabuse.com (type directly) Report the destination wallet addresses here. Chainabuse flags known fraud wallets across the crypto industry, helping exchanges freeze funds and warning future potential victims who encounter the same addresses.

8. The Exchange or Platform Involved Contact the legitimate exchange or platform that was impersonated, if applicable. They have a vested interest in stopping fraud that uses their brand and may be able to flag wallet addresses through industry channels faster than government agencies.

A note on reporting order: File with the FTC and FBI IC3 first as they have the broadest reach and fastest intake processes. Then work through the remaining agencies. Keep a record of every case number and confirmation you receive as you will need them.

⚠️ THE RECOVERY SCAM — THE SECOND TRAP

This is critical and cannot be overstated.

After reporting crypto fraud, many victims are contacted by people claiming they can recover the stolen funds for a fee. These are almost universally scams. They target victims specifically because people who have just lost significant money are desperate and vulnerable.

Recovery scammers may:

  • Contact you unsolicited by phone, email, or social media after your loss
  • Claim to be law enforcement, government agencies, or crypto recovery specialists
  • Ask for upfront fees, additional crypto transfers, or access to your wallets
  • Promise specific amounts of your stolen funds returned within specific timeframes

The reality: Crypto transactions are irreversible. Once funds leave your wallet to an address you don't control, they cannot be returned except in rare circumstances through law enforcement action, and that process takes months or years, not days.

If anyone contacts you promising to recover your crypto for a fee, hang up. Report them to the FTC at reportfraud.ftc.gov (type directly) as a separate incident.

📊 CRYPTO LOSSES, TAXES, AND YOUR COST BASIS REPORT

Crypto theft is not just emotionally devastating, it has real tax implications that may work in your favor.

If your crypto was stolen you may be entitled to claim it as a theft loss on your federal taxes, reported on Form 4684, Section B. This should be filed in the tax year the theft was discovered, which makes documenting the incident as soon as possible critically important.

What is a CPA and do you need one?

CPA stands for Certified Public Accountant, a licensed tax professional. For a crypto theft situation you have options depending on your comfort level and budget:

  • A CPA with crypto experience — the most thorough option if your loss is significant. Look specifically for CPAs who list cryptocurrency taxation as a specialty. Crypto Tax Girl cryptotaxgirl.com (type directly), and CoinLedger's directory coinledger.io/tax-professional-directory (type directly) are good starting points
  • Tax software — TurboTax and H&R Block both have crypto import features that handle straightforward situations
  • A tax preparer — less expensive than a CPA, adequate for simpler situations
  • Self-filing — possible if your situation is straightforward, but theft loss documentation on Form 4684 has specific requirements worth researching carefully

For a significant theft loss, the kind that could save you thousands in taxes, professional help is worth the investment.

To document your crypto losses you will need a cost basis report, a complete record of every crypto purchase, transfer, and transaction showing your original purchase price for each asset.

How to get your cost basis report:

  • Use a crypto tax platform such as Koinly (koinly.io), CoinLedger (coinledger.io), or CryptoTaxCalculator (cryptotaxcalculator.io) (type each directly)
  • Sync all your wallets — even compromised ones — as the blockchain history is permanent and retrievable
  • Tag stolen transactions as "Lost/Stolen" so the platform handles them correctly
  • Export the report and bring it to your tax professional

Important notes:

  • Staking rewards can generate thousands of micro-transactions. Ask your tax professional whether these can be reported in aggregate rather than individually before choosing your platform tier.
  • Transfers between your own wallets are generally not taxable events, but document them clearly.
  • Recovery scam losses may also be deductible. Ask your tax professional.
  • Crypto tax rules are evolving rapidly. Work with someone current on the regulations

The blockchain records everything permanently. Use that permanence to your advantage when documenting your loss.

💙 YOU ARE NOT ALONE

Crypto fraud has devastated hundreds of thousands of people. Smart, careful, informed people. People who did their research, used hardware wallets, and still walked into a sophisticated trap. You are not alone and you are not stupid.

The shame belongs entirely to the people who built the trap– not to you.

Resources for support:

  • Global Anti-Scam Organization — globalantiscam.org (type directly) — peer support from others who have been through crypto fraud
  • Chainabuse community — chainabuse.com (type directly) — reports and community awareness
  • ChainReady — hello@chainready.org — reach The Chain Keeper directly if you need guidance on any step of this process

ChainReady was built by someone who lived this. Every step on this page was actually taken. You don't have to navigate it alone. — The Chain Keeper