Florida-specific guide for recovering cryptocurrency stolen through pig butchering schemes, romance fraud, fake trading platforms, and Ponzi operations. Learn about the Florida Securities Act, Office of Financial Regulation complaints, and civil remedies under Florida law.
Common Crypto Investment Scam Types in Florida
Scam Type
How It Works
Recovery Prospects
Pig Butchering (Sha Zhu Pan)
Scammers build trust over weeks via dating apps or social media, then direct victims to fake trading platforms showing fabricated gains
Moderate if funds traced to regulated exchanges; low if moved offshore
Romance Fraud with Crypto
Fraudsters pose as romantic interests and request crypto for emergencies or investments
Moderate; often traceable through messaging platforms
Promise guaranteed returns; early investors paid with new investor funds until collapse
Moderate in SEC/OFR enforcement actions
Florida-Based Crypto Fraud
Scammers operating from Florida or targeting Florida residents
Higher - Florida courts have clear jurisdiction
Florida Regulatory Framework
Office of Financial Regulation (OFR) - Primary regulator for securities and investments
Florida Securities Act (F.S. Ch. 517) - Covers crypto as securities in many cases
FDUTPA - Deceptive practices claims for fraud
Attorney General - Consumer protection enforcement
Realistic Expectations
Many crypto scammers operate overseas beyond Florida jurisdiction
Funds moved to mixers or privacy coins are extremely difficult to recover
Recovery rates average 10-30% when funds reach regulated entities
Florida courts can freeze assets and order restitution for in-state defendants
Beware of Recovery Scams: Fraudsters often target scam victims again, posing as "recovery specialists" who demand upfront fees or crypto payments. Legitimate attorneys do not guarantee recovery or request payment in cryptocurrency.
Florida Legal Framework for Crypto Fraud
Florida Securities and Investor Protection Act
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F.S. Chapter 517 - Florida Securities Act
Regulates the offer and sale of securities in Florida, including many cryptocurrency investment contracts. Unregistered securities offerings and investment adviser fraud violate this chapter. The OFR can seek civil penalties, restitution, and criminal referrals.
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F.S. Section 517.301 - Fraudulent Transactions
Prohibits fraud, deceit, and material misrepresentations in connection with securities transactions. Covers false statements about investment returns, fake trading platforms, and Ponzi schemes involving crypto.
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F.S. Section 517.211 - Civil Liability
Creates private right of action for securities fraud. Victims can recover consideration paid plus interest, costs, and reasonable attorney fees. Joint and several liability applies to those who materially aid violations.
Florida Office of Financial Regulation
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OFR Enforcement Authority
The Florida Office of Financial Regulation investigates securities fraud, issues cease and desist orders, and can refer cases for criminal prosecution. File complaints at flofr.gov to initiate investigation of crypto scammers.
Additional Florida Remedies
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FDUTPA (F.S. 501.201 et seq.)
Florida's Deceptive and Unfair Trade Practices Act applies to crypto fraud as an unfair or deceptive practice. Provides for actual damages, attorney fees, and injunctive relief. Four-year statute of limitations.
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Common Law Fraud
Florida recognizes civil fraud claims requiring proof of misrepresentation, knowledge of falsity, intent to induce reliance, justifiable reliance, and resulting damages. Four-year limitations period from discovery.
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Conversion and Unjust Enrichment
Unauthorized taking of cryptocurrency constitutes conversion. Unjust enrichment claims allow recovery from parties holding stolen funds even without direct contract. These claims support asset freeze orders.
Florida Jurisdiction: Florida courts have jurisdiction when the scammer operates from Florida, targets Florida residents, or the fraud has substantial effects in Florida. Demand letters to Florida-based defendants are more likely to produce results.
Documentation Checklist
Communication Evidence
Complete message history from dating apps, WhatsApp, Telegram, or email
Screenshots of fake platform interfaces showing fabricated balances
Phone numbers, email addresses, and social media profiles used
Voice recordings or video calls if available
Financial Records
Bank statements showing wire transfers or ACH payments
Exchange withdrawal confirmations and transaction hashes
Wallet addresses for all transfers to scammers
Credit card statements if cards were used to purchase crypto
Blockchain Forensics
On-chain transaction tracing showing fund flows from your wallet to scammer addresses
Identification of exchange deposit addresses where funds landed
Cluster analysis linking multiple scammer wallets to common entities
Professional forensic reports from firms like Chainalysis or CipherTrace strengthen claims
Law Enforcement and Regulatory Reports
Florida Office of Financial Regulation complaint
Florida Attorney General Consumer Protection complaint
FBI Internet Crime Complaint Center (IC3) submission
SEC or CFTC tip submission for securities/commodities fraud
Local Florida law enforcement report
Time-Sensitive: Cryptocurrency moves quickly. Begin documentation and file law enforcement reports within 24-48 hours of discovering the fraud. Exchanges may freeze funds on fraud reports but require law enforcement involvement for extended holds.
Demand Letter Strategy
Target Selection
Regulated Exchanges: If blockchain tracing shows funds at Coinbase, Kraken, or Gemini, demand letters can freeze scammer accounts
Florida-Based Defendants: If the scammer or their business is in Florida, demand letters are more effective
Payment Processors: Wire transfer recipients, payment apps, and banks that processed transactions
Identifiable Perpetrators: If investigation reveals scammer identity in Florida, direct demand with litigation threat
Key Letter Components
Victim Identification: Your identity and Florida residency
Fraud Narrative: Chronological summary with key dates and amounts
Blockchain Evidence: Transaction hashes and wallet addresses showing fund flow
Florida Law Citations: F.S. Ch. 517, FDUTPA, common law fraud
Specific Demands: Account freeze, return of funds, cooperation with investigation
Escalation Path
Initial demand letter with 14-day response deadline
Follow-up letter copying Florida OFR and Attorney General
Civil lawsuit in Florida circuit court for larger claims
Motion for temporary restraining order and asset freeze
Coordination with federal law enforcement for criminal referral
Florida Court Limits: Small claims handles up to $8,000. County court covers up to $50,000. Circuit court handles amounts over $50,000 and complex cases. Most crypto fraud exceeds small claims limits.
Sample Florida Crypto Fraud Demand Letter
[Date]
Via Certified Mail and Email
Legal and Compliance Department
[Exchange Name / Defendant Name]
[Address]
[City, FL ZIP]
Re: Fraud Report and Account Freeze Request - Florida Resident
Scammer Wallet: [Wallet Address]
Total Loss: $[Amount] in [BTC/ETH/USDT]
Florida OFR Complaint: [If filed]
FBI IC3 Complaint: [IC3 Number]
Dear [Recipient]:
I represent [Victim Name], a Florida resident who lost $[Amount] to a cryptocurrency investment fraud scheme. This letter demands immediate action under the Florida Securities and Investor Protection Act (F.S. Chapter 517) and the Florida Deceptive and Unfair Trade Practices Act (F.S. 501.201 et seq.).
FLORIDA JURISDICTION
[Victim Name] is a resident of [County], Florida. [Choose applicable: The fraud was perpetrated by individuals operating from Florida / The fraudulent scheme specifically targeted Florida residents / Funds from Florida were transferred through your platform]. Florida courts have jurisdiction over this matter.
FRAUD SUMMARY
Between [Start Date] and [End Date], my client was targeted by a cryptocurrency investment fraud commonly known as "pig butchering." The perpetrator, using the identity "[Scammer Name/Alias]" on [Platform], cultivated a relationship with my client before directing investments to a fraudulent trading platform at [Fake Platform URL].
My client transferred the following amounts:
- [Date]: [Amount] [Currency] - TX Hash: [Hash]
- [Date]: [Amount] [Currency] - TX Hash: [Hash]
- [Date]: [Amount] [Currency] - TX Hash: [Hash]
Total Loss: $[Amount]
BLOCKCHAIN TRACING
On-chain analysis traces funds through the following path:
[Client Wallet] --> [Intermediary Wallet(s)] --> [Exchange Deposit Address]
The deposit address [Address] is associated with an account at your exchange/platform.
FLORIDA LAW VIOLATIONS
This fraud scheme violates multiple Florida statutes:
1. F.S. Section 517.301: Fraudulent securities transactions
2. F.S. Section 517.07: Sale of unregistered securities
3. F.S. Section 501.204: Unfair and deceptive trade practices
4. Common law fraud and conversion under Florida law
REGULATORY AND LAW ENFORCEMENT STATUS
This fraud has been reported to:
- Florida Office of Financial Regulation: [Complaint Number if filed]
- Florida Attorney General Consumer Protection: [Reference]
- FBI Internet Crime Complaint Center: IC3 Complaint #[Number]
- [Additional agencies]
DEMANDS
Pursuant to Florida law, I demand:
1. Immediate freeze of any account(s) associated with deposit address [Address] and wallet [Scammer Wallet];
2. Preservation of all records related to the account holder, including KYC documents, transaction history, and IP logs;
3. Confirmation within seven (7) days that the freeze is in place;
4. Cooperation with Florida law enforcement and response to civil subpoenas.
LEGAL NOTICE
If you are the perpetrator of this fraud or are knowingly assisting the fraud, you face civil liability under Florida law including:
- Actual damages plus interest (F.S. 517.211)
- Attorney fees and costs
- Potential treble damages for willful FDUTPA violations
- Criminal referral to Florida State Attorney
My client is prepared to file suit in [County] County Circuit Court and seek emergency injunctive relief including asset freeze and prejudgment attachment.
Please direct all communications to owner@terms.law.
Sincerely,
Sergei Tokmakov
Attorney for [Victim Name]
Enclosures:
- Exhibit A: Blockchain Transaction Analysis
- Exhibit B: Law Enforcement Report Confirmations
- Exhibit C: Communication Screenshots
Even if the scammer is outside Florida, you may have claims if they targeted Florida residents or funds moved through Florida-based institutions. Florida's long-arm statute (F.S. 48.193) allows jurisdiction over those who commit torts in Florida or transact business in Florida. Federal claims may be more effective for offshore defendants.
Professional blockchain analysis strengthens your case significantly, especially for complex fund flows. For losses over $50,000, forensic analysis is usually worth the investment. For straightforward transactions to major exchanges, you may document tracing yourself using block explorers.
Yes. Florida courts can issue temporary restraining orders and preliminary injunctions freezing cryptocurrency held at exchanges. You must demonstrate a likelihood of success on the merits and risk that assets will be dissipated. File in circuit court with a verified complaint and motion for emergency relief.
Attorney Services & Contact
Florida Cryptocurrency Fraud Recovery
I represent Florida residents victimized by crypto investment scams, pig butchering schemes, and fake trading platforms. Services include OFR complaint filing, demand letters, civil litigation, and coordination with law enforcement.
Email owner@terms.law or use Calendly for a paid strategy session.