Bitcoin is not without its controversies and hackers.
One of the most infamous Bitcoin hacks involved users losing their Bitcoin to a telegram group that purported to invest the Bitcoin in the market.
Of course, the scammers simply ran off with the Bitcoin once they had acquired enough of it.
This left the victims with no money in their cryptocurrency account and asking the same question:
Is it possible to recover stolen Bitcoin?
Unfortunately, it is not possible to recover stolen Bitcoin. This is obviously disappointing to those that have lost Bitcoin to scammers, but it is one of the strengths of Bitcoin.
Why is the lack of recoverability of Bitcoin a benefit?
Well, the inability to recover Bitcoin obviously is not a benefit in the event of a scam. However, most cryptocurrency users prefer that Bitcoin is irreversible because this means that transactions cannot get chargebacked for any reason.
As anyone that has dealt with credit cards of banks knows, the money in your bank account or on your credit card can disappear at any moment.
The government can issue a hold on it or hackers can transfer all the funds from your bank account.
That simply isn’t a problem with Bitcoin. The security of Bitcoin wallets is far too great for anyone to hack the wallet or blockchain.
In fact, there has never been a successful hack of the Bitcoin blockchain in the 9 year history of Bitcoin, which is an amazing track record of success.
Can I pay a hacker to hack back my stolen Bitcoin?
No, you cannot pay a hacker to hack back your stolen Bitcoin.
First of all, that is illegal in every country. You cannot use a computer to access unauthorized data.
On top of that, anyone that claims they can hack back your stolen Bitcoin is attempting to scam you. There has never been a successful hack of the Bitcoin blockchain, so if someone claims they can hack a wallet they are almost certainly attempting to scam you of even more Bitcoin.
What can I do about the Bitcoin I lost to the fake investment group on Telegram?
We’ll be blunt here.
There isn’t anything you can do about the Bitcoin you lost to the fake investment group on Telegram. You will have to chalk it up as an expensive lesson about the many scams that involve Bitcoin.
How to not get scammed of your Bitcoin
Not getting scammed out of your Bitcoin is not as complicated as many people think. This section will cover some of the most popular scams and how to avoid them.
Never Send Bitcoin to Strangers
The fake investment group on Telegram basically operated by having users send their Bitcoin to one particular wallet for investment purposes.
This breaks one of the main rules to avoid getting scammed of your Bitcoin – never send Bitcoin to strangers on the internet.
Think about it, what incentive does the stranger have to follow through with their promise about sending you the Bitcoin?
Exactly. They have no incentive, so they will more often than not run off with your Bitcoin.
Bitcoin Investment Groups Are Normally Scams
To further this point, Bitcoin investment groups are normally a scam. Even if you don’t have to send your cryptocurrency to a wallet, you will often be susceptible to a pump and dump scam.
What is a pump and dump scam?
A pump and dump scam is when a group of people promote a particular cryptocurrency to drive demand. However, the group will hold that cryptocurrency before they begin promoting. When the unwitting victims are purchasing cryptocurrency they are purchasing it from the scammers and not random people on the market.
Finally, the price will crash when the scammers stop creating artificial demand for the cryptocurrency.
Keep Your Bitcoin in Your Wallet And Not The Exchange
This is one of the more common scams you will encounter with cryptocurrency. And people fall for it because they trust their cryptocurrency exchange.
Unfortunately, a cryptocurrency exchange still has many of the same problems that a normal bank has with security. This means that it is possible for a hacker to hack into the exchange and steal the exchange’s wallet.
In summary, don’t keep cryptocurrency on an exchange for an extended period of time. It’s just too risky.
Don’t Send Bitcoin Until You Have Received Services
This scam is most often seen on LocalBitcoins. The buyer of Bitcoin will request you to send Bitcoin before sending goods to you.
Of course, once you send Bitcoin to their wallet there is no way to reverse the transaction.
This is why you should ensure that you have received any goods or services before sending Bitcoin to someone’s wallet.
Don’t Use Bitcoin For Illegal Activities
First of all, you shouldn’t break the law. Many people still attempt to break the law using Bitcoin for their transactions, which is a huge mistake.
Most of the criminal activities that involve Bitcoin are simply scams. And you obviously have no recourse if you get scammed because you were attempting to break the law.
Bitcoin Multipliers Are Always Scams
This one should be obvious to most people, but anyone claiming to multiply Bitcoin is running a scam.
It is not possible to multiply to Bitcoin. If it was possible to do so, then the person would do it themselves and not for random strangers on the internet.
Use Trustworthy Cryptocurrency Exchanges
Many scams involving cryptocurrency rely on untrustworthy cryptocurrency exchanges. The scammers will set up the exchange and wait for it to reach a certain amount of money on the exchange. Once that point is reached, the scammers close the exchange and keep all the cryptocurrency for themselves.
We recommend using trustworthy cryptocurrency exchanges. Sure, the fees might be a little higher, but you are much less likely to get scammed if you use a trustworthy cryptocurrency exchange.
This is also why we recommend keeping your cryptocurrency in your wallet rather than in the exchange.