What are the legal options if I am scammed in a Crypto transaction?

Immediate Steps to Take

If you have lost funds to a cryptocurrency scam (such as a ‘pig butchering’ scam, fake exchange, or wallet drainer), you must act within hours, not days:

1. Trace the transaction: Save the TxID (Transaction ID) and the destination wallet address. This is the “digital fingerprint” needed for any recovery attempt.
2. Report to the Australian Cyber Security Centre (ACSC): File a report at cyber.gov.au. This creates an official record used by the Federal Police.
3. Contact relevant Exchanges: If your funds were sent to a known exchange (like Binance, Kraken, or CoinJar), contact their security team immediately. They may be able to freeze the account if you provide a police report number.
4. Contact your Bank: If the scam involved a bank transfer to buy the crypto, your bank may be able to reverse the initial fiat transaction.

Legal Recourse in Queensland

While the decentralized nature of blockchain makes recovery difficult, there are several legal paths:

1. Freezing Orders (Mareva Injunctions)

If a significant amount has been stolen and can be traced to a specific account on a centralized exchange (even overseas), a Queensland court can issue a Freezing Order. This legally compels the exchange to stop the scammer from withdrawing the funds while a civil case is prepared.

2. Civil Litigation

If the identity of the person who scammed you is known (or can be unmasked via a court-ordered subpoena to an ISP or exchange), you can sue them for:

• Breach of Contract (if they promised a service).
• Deceit/Fraud.
• Unjust Enrichment.

3. Australian Consumer Law (ACL)

If you were scammed by an Australian-based company or “influencer” promoting a fake project, they may be liable for misleading and deceptive conduct under the ACL.¹

Warning on ‘Recovery Scams’: Be extremely wary of anyone online claiming they can “hack” or “reverse” your blockchain transaction for a fee. These are almost always secondary scams targeting people who have already lost money.

Need technical legal advice on a crypto incident? Contact Bell & Senior to discuss your options for asset tracing and freezing orders.