A collaboration between Coinfirm and Kroll has led to the launch of ReclaimCrypto, a service that applies blockchain forensics to help recover stolen cryptocurrencies. Below we explain how the service works and who is behind the project.
How ReclaimCrypto Works
Pawel Kuskowski, CEO of Coinfirm, says there may be as much as $10 billion in stolen digital assets waiting to be recovered. Many victims of cryptocurrency theft do not report the crime because they believe recovery is impossible.
ReclaimCrypto aims to change that by providing victims with a place to seek help. Kuskowski believes “there is no place for victims to turn to” at present, and estimates that addressing the top 200 theft cases could potentially lead to recovering roughly $1.5 billion.
Data from CipherTrace indicate that about $4 billion in cryptocurrencies disappeared this year alone. The $10 billion figure refers to a broader estimate that includes past thefts and unresolved cases.
Fees for ReclaimCrypto’s services will be determined on a case-by-case basis. The service focuses primarily on Bitcoin (BTC) and Ethereum (ETH), but it can also trace assets such as XRP, BCH, LTC, NEO and Dash as needed.
Who Is Coinfirm?
Coinfirm is a firm that analyzes blockchain transactions to detect illicit activity such as money laundering and related crimes. The company uses technologies like big data analytics and works with data from roughly 50 cryptocurrency exchanges. While not the only firm in this field, Coinfirm states on its website that it is the “only provider of analytic and AML data for XRP.”
Coinfirm’s listed services include blockchain analytics, fraud detection, and regulatory compliance advisory work.
Who Is Kroll?
The other partner in this venture is Kroll, a division of Duff & Phelps, known for applying traditional investigative techniques to internet fraud cases.
Kroll previously assisted the U.S. Securities and Exchange Commission in examining fraudulent ICOs and has been involved in tracing perpetrators who stole $27.8 million in bitcoin.
Benedict Hamilton, CEO of Kroll, described the business of recovering stolen cryptocurrency as “a very different economy” compared with other recovery fields, noting that this type of investigative work is particularly engaging for investigators.
This initiative could offer new hope to individuals seeking to recover stolen crypto assets. That said, it remains prudent for users to rely on reputable exchanges and to employ strong security measures to reduce the risk of theft.