Can Cryptocurrency Holders be Traced? A Close Look at the Twitter and Colonial Pipeline Crypto Scams

Crypto scams are rising to unprecedented levels. The sheer number of frauds is tarnishing the reputation of cryptocurrencies. People are afraid of having their digital coins stolen or being taken advantage of in a crypto forex trading scam. 

Because of the lack of centralized regulation of the cryptocurrency market and the belief that transactions on the blockchain are anonymous, many people, including crypto scam artists, believe that it is very difficult if not impossible to track down cybercriminals and stolen funds on the blockchain. 

However this assumption is increasingly being challenged. The FBI, other law enforcement agencies, and fund recovery services are more frequently pursuing crypto scams, uncovering the identity of the scammers and recovering funds for clients. This is true in many cases, inbcluding the Twitter hack and the Colonial Pipeline ransomware attack. 

Looking carefully at these two high-profile cases, it is clear that crypto scams and the identity of cryptocurrency holders can be uncovered. If you have been affected by a crypto scam or a forex trading scam, talk to a fund recovery company about how to improve your chances of catching the culprits and getting your money back. 

Improve your chances of successful fund recovery by consulting with Fund Recall experts. We have combined decades of expertise and have proven techniques for tracking crypto transactions, negotiating with banks, financial authorities, law enforcement, and government bodies. We work on behalf of our clients to combat forex trading scams, crypto scams, and other frauds and have a proven track record of success.

Case Study #1 the Twitter Hacking Crypto Scam

The Twitter hacking scam was a two-part fraud that began as a social engineering and hacking scam and ending with a bitcoin fraud. Graham Clark, the 17-year-old mastermind behind this Twitter bitcoin scam, and his accomplices pretended to be from Twitter’s IT department. 


These so-called IT workers were reaching out to Twitter employees working remotely and asked them for access to their VPNs. Enough of the Twitter employees believed these were genuine IT workers that they provided them with access. 


Once Clark and his accomplices gained access to company data, they were able to hack into the accounts of 100 high-profile individuals, including Barack Obama, Bill Gates, and Elon Musk. 


The second part of the fraud was a crypto scam. The hackers pretending to be celebrities offered users the chance to double their bitcoin in a few hours without explaining the methods. 


Clark managed to steal $118,000 in bitcoin and was prevented from stealing more, but Twitter put a stop to the deal once it was suspected to be a scam. Coinbase provided information to the FBI, including bitcoin addressed. The platform Discord also handed over chats. From these pieces of evidence, the FBI was able to track down the hackers and the bitcoin. 


Currently, Graham Clark, 17, Mason Sheppard, 19, and Nima Fazeli 22 currently face 30 felony charges in Florida for their alleged crimes. This case demonstrated that companies such as Twitter, Coinbase and Discord cooperating with the FBI is enough to uncover the identity of crypto transactions on the blockchain. 

Case Study #2 The Colonial Pipeline Ransomware Crypto Scam

The Colonial Pipeline shocked the United States as hackers held up fuel services in one of the nation’s largest pipelines. They used ransomware and demanded $4.4 million in bitcoin. Colonial paid the $4.4 million so the pipeline could resume its operations. 

Many people thought this was a bad move because they feared that cryptocurrencies could not be retrieved from the crypto scam. However, just weeks after the affair, the FBI had already retrieved $2.7 million of the total $4.4 million and the process is ongoing. 

This is significant because many people believe that holders of cryptocurrencies can’t be traced. Even though every transaction is recorded and managed on the blockchain, they are done so anonymously. However, authorities have access to advanced technology and have the authority to demand information in some circumstances.

How Authorities Track Down Crypto Scams

There are several ways authorities use to track down crypto scams. They can leverage the expertise of crypto scam experts and those with extensive technical knowledge related to the blockchain.


In the case of the Twitter and Colonial Pipeline attacks, the FBI worked together with companies, such as Coinbase, that could provide information. In some cases, even the FBI needed a court order to get bitcoin codes, but that is necessary for a thorough investigation. In both of these cases, the FBI was successful in tracking down the people behind these illegal bitcoin transactions and was able to recover at least a portion of the cryptocurrency. 

What You Should Do If You Have Been Targeted by a Crypto Scam?

If you have had your bitcoin stolen in a fake purchase, in a forex trading scam or crypto scam, it is important to report it immediately and enlist the aid of a fund recovery service. 

People can no longer assume that cryptocurrency holders will remain anonymous even if they commit crimes. While it is true that those who are not suspects in a fraud feel confident their identities will be protected, that is not true for those who create crypto scams. 

The FBI, Interpol, and other law enforcement agencies can command enough respect and cooperation with companies and can obtain a court order to look at sensitive information during an investigation. Therefore, there is reason to believe that fund recovery is successful. 

Acting fast and having all of the information you need on hand are the best ways to improve your chances of fund recovery. Giving law enforcement, regulators and authorities a full picture of what happened will help them catch the scammers and work towards fund recovery. 

Fund Recall Will Help You Get Your Money Back

If you have a dispute with a merchant or have been the target of a forex trading scam or crypto scam, don’t give up hope of getting your money back. Our experts are well-versed in the negotiation process and haves strategies that will help you succeed in retrieving your funds. 

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