Bitcoin, Ethereum, and other cryptocurrencies have revolutionized the financial industry, but there are significant risks. The meteoric rise in digital currency and investments is concerning, particularly given the new technology. A lack of significant oversight has resulted in devastating outcomes. Security breaches, fraud, and market volatility have accounted for billions of dollars in crypto losses.
At Levin Law, P.A., we represent investors who have suffered cryptocurrency losses as a result of another party’s negligence or wrongdoing. In many cases, a company’s failure to protect a consumer’s privacy and data results in substantial financial losses.
Call (305) 402-9050 today to speak with an experienced crypto asset recovery lawyer.
What Is Cryptocurrency?
Cryptocurrency is a digital currency secured through blockchain technology. The technology behind crypto is decentralized and creates an immutable ledger online of all transactions. However, since it is decentralized and relatively new to the market, crypto has little oversight from state or federal regulators.
Investors are at risk for fraud such as Ponzi-like schemes and may be vulnerable to digital hacking. While transactions utilizing blockchain technology are secure and difficult to change once entered into the ledger, the devices that are used to hold digital information may be prone to security and data breaches.
Common Types of Cryptocurrency
There are thousands of cryptocurrencies currently on the market, but only a small portion have made waves with investors. These digital investments range in value from fragments of a dollar to tens of thousands in the case of Bitcoin. It is important to note that the crypto market can fluctuate dramatically. Bitcoin, for example, lost nearly half of its value after peaking at over $60,000 in Spring 2021.
For many investors, cryptocurrency and digital investments are extremely speculative. Crypto exchanges have also been plagued by Ponzi schemes, deception, and other fraudulent activities. There is litigation occurring throughout the country alleging that investors were defrauded by companies claiming to be a safe platform for cryptocurrency transactions, only to result in millions of dollars in losses for victims.
Some of the most popular types of cryptocurrency include:
- Bitcoin (BTC)
- Coinbase Global, Inc. (COIN)
- Ethereum (ETH)
- Tether (USDT)
- Stellar (XLM)
- Binance Coin (BNB)
- Cardano (ADA)
- XRP (XRP)
- Dogecoin (DOGE)
- Litecoin (LTC)
- Crypto.com Coin (CRO)
- Bitcoin Cash (BCH)
- Chainlink (LINK)
- Polkadot (DOT)
- Monero (XMR)
- USD Coin (USDC)
If you have been defrauded by any of the companies above or any others, call (305) 402-9050 to speak with an attorney.
How Cryptocurrency Recovery Claims Work
Recovering digital assets is a high-stakes race against time that requires knowledge of forensic blockchain technology and aggressive legal maneuvering. Unlike traditional bank fraud, crypto recovery involves an immutable ledger where transactions are final, meaning we must act quickly to "freeze" assets before they are laundered through mixers or off-ramped into fiat currency.
Initial Investigation & Blockchain Tracing
Our process begins with forensic blockchain analysis. We utilize advanced tools like Chainalysis or TRM Labs to map the movement of stolen funds from the victim's wallet through the various "hops" on the blockchain. This allows us to identify where the funds currently sit.
Identifying Liable Parties
While the hacker may be anonymous, the companies that allowed the theft to occur or are currently holding the stolen funds are not. We identify liability among:
- Cryptocurrency Exchanges: For failing to flag suspicious transfers or allowing withdrawals despite security alerts.
- Telecommunications Companies: For security failures in SIM swap attacks.
- Custodians & Wallets: For breaches of fiduciary duty or failure to implement promised security features.
Litigation vs. Arbitration
Many cryptocurrency exchanges and telecom providers include mandatory arbitration clauses in their Terms of Service. Levin Law, P.A. is experienced in navigating both high-stakes courtroom litigation and specialized arbitration forums to secure recoveries.
Cross-Border Recovery Challenges
Cryptocurrency is global, and hackers often operate across jurisdictions. We leverage international legal cooperation and "John Doe" lawsuits to subpoena foreign exchanges and secure emergency freezing orders across borders.
Timeline Expectations
Crypto recovery is not instantaneous. While initial tracing and emergency freezes can happen within days, full recovery through litigation or settlement typically takes several months to over a year, depending on the challenges of the case and the jurisdiction of the defendants.
Common Causes of Cryptocurrency Losses We Litigate
As of 2026, the methods used to defraud investors often utilize AI and deepfake technology to bypass traditional security. Scammers now use generative AI to clone voices for social engineering or create hyper-realistic "agentic" bots that can manipulate victims emotionally over months.
These tools have led to record-breaking losses, with global deepfake fraud rising by over 700% in the last year alone. Our firm stays at the forefront of these technological shifts to ensure that when technology is weaponized against you, we have the forensic and legal tools to push back.
SIM Swap & Mobile Carrier Failures
In a SIM swap attack, hackers manipulate mobile carrier employees through social engineering or bribery to port your phone number to a device they control. Once they possess your number, they can bypass SMS-based two-factor authentication (2FA) to reset passwords for your email and cryptocurrency exchange accounts.
This allows them to drain an entire life savings in a matter of minutes while you are left with a "No Service" signal on your phone. Under recent 2025 and 2026 appellate rulings, carriers have a reinforced statutory duty to protect your data, and we aggressively pursue litigation when their security failures facilitate these thefts.
Exchange Hacks & Security Breaches
Even the most reputable global exchanges are vulnerable to systemic security breaches or "hot wallet" compromises. When an exchange's internal protocols fail, whether due to an unpatched software vulnerability or a massive DDoS attack, millions of dollars in user assets can vanish instantly. While exchanges often point to their User Agreements to deny liability, many of these contracts contain arbitration clauses that actually provide a viable legal path for recovery.
We specialize in navigating these mandatory arbitration forums to hold platforms accountable for their failure to implement industry-standard safeguards.
Wallet Compromises
Wallet compromises represent a direct attack on self-custody investors, often through sophisticated phishing campaigns or malicious smart contracts. Hackers may use "dusting attacks" or fake airdrops to trick users into signing permissions that give the attacker full control over their funds. In many cases, these compromises are the result of "seed phrase" theft through malware or unauthorized access to digital backups.
Our legal team works with top-tier blockchain forensic firms to trace these funds across chains, helping to identify the centralized endpoints where stolen assets can be frozen.
Insider Theft & Platform Misconduct
Insider theft occurs when employees, developers, or executives with high-level administrative access misuse customer funds or execute unauthorized transfers. These cases are particularly complex as they often involve a breach of fiduciary duty and the deliberate bypassing of internal controls.
Reminiscent of the major exchange collapses of previous years, platform misconduct can involve the "co-mingling" of assets where user funds are used to cover the firm’s operational losses. We litigate these cases to pierce the corporate veil and hold the individuals responsible for the mismanagement of your digital wealth.
Ponzi & Rug Pull Schemes
"Rug pulls" occur when malicious developers create a new token or DeFi project, attract significant investment, and then suddenly abandon the project after siphoning off the liquidity. These schemes often use paid influencers and AI-generated hype to create a false sense of legitimacy and urgency.
While the blockchain is immutable, the promoters and the platforms that facilitate these "exit scams" can often be held liable under consumer protection and securities laws. We pursue recovery against both the primary actors and the third-party facilitators who profit from these fraudulent schemes.
DeFi Exploits & Smart Contract Failures
The Decentralized Finance (DeFi) space is plagued by "bugs in the code" that are frequently exploited by bad actors to drain liquidity pools. While developers often claim these events are "unforeseeable" technological failures, many are the result of gross negligence or a lack of mandatory security audits.
As DeFi integrates more with real-world assets in 2026, the legal standards for protocol security have heightened, creating new opportunities for litigation. We investigate these exploits to determine if the developers failed to meet minimum security standards or ignored known vulnerabilities prior to the loss.
Legal Liability Theories in Crypto Losses
Levin Law holds companies accountable by applying established legal principles to the digital asset space. We pursue recovery under several theories:
- Negligence & Gross Negligence: Failing to implement industry-standard security measures, such as multi-factor authentication (MFA) or robust identity verification.
- Failure to Safeguard Customer Data: Especially relevant in SIM swap cases where carriers fail to protect "Customer Proprietary Network Information" (CPNI).
- Breach of Fiduciary Duty: When custodians or investment platforms mismanage assets they were entrusted to protect.
- Consumer Protection Violations: Pursuing claims under state and federal laws for deceptive practices or unfair security representations.
- Contractual Breaches: Holding platforms to the specific security promises made in their Terms of Service.
- Regulatory Non-Compliance: Identifying failures in FinCEN or AML/KYC requirements that allowed illicit actors to off-ramp stolen funds.
Cryptocurrency Sim Card Swap Hack
In a recent case, a T-Mobile customer suffered significant losses after the company allowed a hacker unauthorized access to their account multiple times. The company’s gross negligence in allowing the hacker to repeatedly infiltrate their security systems resulted in the loss of $8.7 million in cryptocurrency.
A year prior to the customer’s cryptocurrency losses, the Federal Trade Commission (FTC) had warned about the potential for fraud at cellular carriers, referred to as a SIM Card Swap Hack or SIM Swap Scam. Hackers, as in the T-Mobile case, use several strategies to overcome the cellular provider’s two-factor authentication security measures obtaining a new data-rich SIM card with all of the customer’s information.
The information is transferred by the cellular company to a device controlled by the hacker who then uses it to gain access to their personal and financial accounts. The outcome is generally a total loss of digital investments which are quickly transferred to the hacker’s account. Cellular companies who have taken no additional measures to protect their customers from fraud, must be held accountable.
Devastating Cryptocurrency Losses
Investors have lost millions of dollars in cryptocurrency after cellular companies provided unauthorized access to the personal and financial information of holders of cryptocurrency.
If you have sustained losses in cryptocurrency as a result of a cellular or mobile phone company’s data or security breach, contact Levin Law, P.A. immediately. You may be able to recover your losses through a lawsuit or arbitration claim if your losses were caused by a company’s negligence. Our cryptocurrency lawsuit attorneys can help you understand your rights and your potential for recovery. Call (305) 402-9050 today.
Cryptocurrency Practice Areas
At Levin Law, P.A., we help those victimized by fraudulent crypto transactions and cryptocurrency theft recover their losses. We handle cases nationwide and have secured large recoveries on behalf of investors throughout the world.
Our cryptocurrency practice areas include but are not limited to:
- Anti-Money Laundering Safeguards and Procedures
- Asset Security
- Cryptocurrency Ponzi Schemes
- Decentralized Finance (DeFi) Compliance
- Distributed Denial of Service (DDoS) Attacks
- Financial Crimes Enforcement Network (FinCEN) Compliance
- Flash crashes
- Initial Decentralized Exchange Offerings (IDOs)
- Initial Coin Offering (ICO) Compliance
- Privacy and Data Security Breaches
Contact Levin Law, P.A. Today for a Free Case Evaluation
Contact Levin Law, P.A. to discuss your case directly with a skilled cryptocurrency lawsuit attorney. Most cases are handled on a contingency fee basis, meaning that you do not pay Levin Law, P.A. attorneys fees unless we recover money on your behalf. Call (305) 402-9050 to get started.
Levin Law, P.A.’s managing partner, Brian Levin has recovered millions on behalf of defrauded investors. He is an experienced litigator dedicated to providing first-class legal representation to clients across the globe.
Cryptocurrency Recovery & Litigation FAQs
Can stolen cryptocurrency be recovered?
Yes. While it is difficult, it is possible if the funds are traced to a centralized exchange that complies with court orders. Speed is the most critical factor in successful recovery.
Who is liable for crypto losses?
Liability can fall on several parties, including the mobile carrier (in a SIM swap), the crypto exchange (for security failures), or the investment platform (for fraud or negligence).
Can you sue a cell phone company for a SIM swap?
Yes. Recent 2025 and 2026 appellate rulings have reaffirmed that carriers have a legal duty to protect your account information. If they fail to do so, they may be held liable for the resulting financial theft.
How long does crypto recovery litigation take?
Depending on whether the case settles or goes to a final hearing/trial, the process usually spans 6 to 18 months.
Can losses be recovered if the hacker is unknown?
Often, yes. We do not necessarily need to find the hacker to recover funds. We focus on the "gatekeepers"—the exchanges and carriers—whose security failures made the theft possible.
Is crypto recovery possible after years?
It is more difficult, but not impossible. However, most states have a statute of limitations (often 2-4 years) for filing negligence or contract claims.
