Can the police do anything about stolen crypto? Today, law enforcement can use software to track and trace bitcoin transactions and give them the leads they need to follow the money trail.
What happens if a crypto exchange is hacked? First, if the exchange is hacked, you may lose your holdings. Second, if the exchange were to fold for any reason, you may not have recourse to recover your holdings. Instead, many cryptocurrency exchanges let customers hold their U.S. dollar balances in linked accounts at partner banks insured by the FDIC.
Can you go to jail for cryptocurrency? Ultimately, you could end up facing over $100,000 in fines and spend at year or more in a federal prison. Risking this kind of penalty is never worth it.
Can you get crypto back if hacked? And because of the transparency of blockchain technology, authorities can confirm which stolen assets belong to each victim in large-scale fraud schemes. So you can recover stolen crypto even if scammers or hackers store it in an offline wallet.