How To Recover Stolen Bitcoin?
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How To Recover Stolen Bitcoin?

written by John Murphy | January 30, 2023

Bitcoin is no secret! It is a borderless, permission less, and decentralized cryptocurrency that requires no storage and exists virtually. But how to recover stolen Bitcoin if it falls in the hands of a scammer or hacker?

Digital currency is viewed as the future of finance as it is ideal for storing value and hedge Bitcoins against rising inflation. However, this trillion-billion dollars industry is not fully secure from hacking.

Thus, even if you are not into the crypto trade, many people know well about Bitcoin loots from the news and social media. It is a dark fact that keeping the world’s largest cryptocurrency safe is a challenge.

Through this article, we will enable you with methods to secure Bitcoin and learn how to recover stolen Bitcoin.

So, let’s start without further ado!

Recovering Stolen Bitcoin

The first thing to understand is how Bitcoins are stolen. Because coins stored in digital crypto wallets, secured by a seed phrase, private key or password. Thus, when a user loses access to these keys, his digital currency is said to have been stolen.

However, a compromised seed phrase, unauthorized access to a wallet or fraudulent activity will land an investor in hot waters. Luckily, stolen Bitcoin is recoverable.

Here are key methods to recover stolen Bitcoins.

  • Track stolen Bitcoin

One of the best and proven sources to recover stolen Bitcoin is to track it back to the account where it is lying after the scam. While transactions are irreversible on a blockchain, thus involving cryptocurrency exchange to trail back lost coins can help you recover your coins.

Moreover, the exchange may require you to hire a blockchain explorer to follow the perpetrator’s wallet address. However, if the account linked with a cryptocurrency exchange with KYC documentation, the investor can recover their stolen bitcoins.

On the contrary, if the fraudster’s account passes through the necessary KYC process, it becomes difficult to get back Bitcoins. Therefore, investing in cryptocurrency is not fully secure.

  • Hire a Professional Bounty Hunter

Bounty hunters are blockchain experts that help out users to rediscover their lost coins. So, they are like private detectives that lend recovery services. However, they normally charge a percentage of recovered Bitcoins.

For instance, RSB – Report Scammed Bitcoin. RSB help to recover forgotten passwords lost private in addition to recovering lost or stolen cryptocurrencies. They work in collaboration with law enforcement agencies and owners to recover Bitcoin.

  • Contact your Exchange

Another way to get back stolen Bitcoins is to contact and report a scam with your exchange immediately. Since they hold your coins thus, they have the necessary information, skills and technology to track and make a recovery.

However, since exchanges do not promise full recovery of stolen assets, keeping your partner updated is vital as it will help them strengthen their security protocols.

  • Extract Hard Drive Data

For scenarios where an investor has accidentally deleted his pass keys for crypto wallet, they can consult any data retrieving experts to help to recover lost stolen.

In addition, there is free-of-charge software which also supports data recovery. So, by recovering your data and, subsequently, passwords, you can access your lost digital wallets where Bitcoins already stored.

Securing Bitcoins

As the doctor advises, prevention is better than cure. Thus, securing your Bitcoins can save you from paying extra money for recovery.

Fortunately, there are now a concise set of rules that can secure Bitcoin from hackers and scammers.

  • 2-factor authentication

It is now a standard security mechanism across cryptocurrency exchanges. The process requires a time-sensitive six-digit code, the last line of defense. The OTP send to registered email and cell phone through a third-party authenticator. In short, adopting two-factor authentication significantly improve security.

  • Backup seed phrases and passwords

Rather than storing passwords online, it is better to write them down and place them at several locations physically. It will help if you forget your password.

  • Main privacy

The easiest way to secure Bitcoin is not to share crypto-related details with anyone. The fewer people who know about your Bitcoins, the less likely you are chances for you being on a hot list.

  • Hardware wallets

Hardware wallets or cold wallets are the best way to store your Bitcoin. They may seem expensive, but you will regret buying them as they offer high-level security.

Frequently Asked Questions

Can I recover my scammed Bitcoin?

It may sound bad, but recovering scammed Bitcoin is a tough ask. There are a few cases where users could recover their lost coins. However, in the majority of cases, this was not the case.

Can I get back the mistakenly sent Bitcoin?

Since transactions on the blockchain are irreversible, the only way to get your wrongly transferred Bitcoin back is to contact the party and ask for their cooperation to return your funds.

Can I track stolen Bitcoin?

Yes! It certainly is possible to track stolen Bitcoins. A Bitcoin explorer maps each activity on the blockchain; thanks to crypto transparency, transactions are traceable.

How much do crypto bounty hunter charge?

There are no rules; however, bounty hunters generally charge a certain predefined percentage of the recovered Bitcoin.

Are cold wallets better than a hot wallets?

Cold wallets are better than hot ones, as they are not always connect to an internet connection. You only make them online when you need transaction. However, they are costly.

Parting Thoughts

There are risks regarding the world’s leading cryptocurrency – Bitcoin. Thus investors are worried about how to recover stolen Bitcoin.

Thankfully, cryptocurrency exchanges have developed high-level security features to avoid scams and fraud. However, we still hear many incidents where hackers have looted Bitcoin.

The best way to recover stolen Bitcoin is to involve your crypto exchange. They are holders of your digital assets and have the resources to track your coins. So, the first action on your to-do list is to report to your exchange.

Furthermore, you can hire a private bounty hunter who will support the recovery of your stolen Bitcoin and charge a certain percentage for his services. 

Please keep your Bitcoin safe by increasing modern security features. Wishing you all the best with the recovery of your stolen Bitcoins.  

Kindly leave feedback in the comments section and let us know if you were lucky enough to recover stolen Bitcoin.