Kelman Law and the Law and Ledger Segment
Kelman Law, a law firm specializing in digital asset commerce, has issued a new segment called Law and Ledger that delves into the latest developments surrounding cryptocurrency legal matters.
FBI Advisory on Fraudulent Law Firms
Recently, on August 13, 2025, the FBI’s Internet Crime Complaint Center (IC3) issued an urgent advisory concerning an alarming trend in the cryptocurrency sector: fraudulent law firms that are preying on individuals who have already been scammed. These deceptive entities present themselves as legal professionals, offering to help recover lost digital assets, but in reality, they are executing a secondary scheme aimed at further exploiting these vulnerable victims.
This warning marks a continuation of the FBI’s efforts to address recovery scams that have increasingly grown in sophistication since previous alerts were made in August 2023 and June 2024.
The latest statement accentuates how these frauds have evolved, employing realistic branding, fake regulatory entities, and manipulative strategies to mislead individuals into believing that they only need to pay for assistance. The FBI emphasizes that these scams are inherently fraudulent, and the best way to combat them is through awareness, skepticism, and prompt reporting of any suspicious activities.
Characteristics of Fraudulent Operations
Fraudsters involved in these schemes are not haphazardly organized; they meticulously craft their operations to mimic genuine legal services. By posing as lawyers or legitimate recovery specialists, they exploit the instinctive trust people place in such figures, especially during emotionally challenging times following financial loss.
Among the most vulnerable targets for these scams are the elderly, who are often in distress and eager to reclaim their lost funds. Scammers exploit this urgency, sometimes impersonating licensed attorneys and even creating convincing-looking legal documents, complete with seals, letterheads, and well-designed websites. They go as far as to forge connections with U.S. government bodies or foreign regulatory agencies, even fabricating entirely fictitious organizations like the so-called International Financial Trading Commission (INTFTC) to enhance their credibility.
Payment Methods and Red Flags
The methods they use to request payment often raise red flags. Victims may be guided to pay through cryptocurrency or gift cards—payment methods that the U.S. government explicitly does not accept for law enforcement services, casting doubt on the legitimacy of such requests. Unscrupulous actors sometimes demonstrate detailed knowledge of the victims’ prior financial transactions, enhancing the illusion that they have insider connections.
Notably, these scams may even extend their influence into financial institutions, where victims are led to believe their funds are being held in foreign accounts and are prompted to join seemingly legitimate platforms. These platforms quickly reveal themselves as fake, funneling individuals into unsecured WhatsApp groups where they face pressure to pay fraudulent “bank fees.”
Evading Accountability
These deceptive legal entities skillfully evade accountability, refusing to engage in video communications or provide proof of their identities. Their unwillingness to reveal themselves not only allows them to stay hidden but also enables them to continue extracting hard-earned money from their victims.
Recognizing and Avoiding Scams
Recognizing and understanding the signs of these scams significantly increases the chances of avoiding them. The FBI recommends a Zero Trust mindset—an attitude of skepticism is crucial, especially with unsolicited communications that claim to be from legal professionals. Any unexpected outreach should always be treated with caution.
Potential victims are encouraged to demand verified credentials from anyone claiming to offer legal assistance. A legitimate attorney should readily provide verifiable proof, such as a law license and should not hesitate to conduct video calls. Failing to meet these requests can indicate deceit.
Additionally, any claims of affiliation with government entities must be independently verified with the appropriate agencies. Accurate documentation and meticulous record-keeping are essential—victims should save all communications and evidence to assist in any future investigations.
Before entering any financial agreement, victims should request notarized identification or other official documentation from the contacted party, and without such verification, they should decline to engage further.
Importance of Reporting
The FBI reiterates the importance of timely reporting to combat these fraudulent schemes. Prompt reporting can not only increase the likelihood of halting these scams but also safeguard others from becoming victims. If anyone suspects they have fallen victim to such fraud, they are urged to report it to their local FBI office or visit the IC3 portal at ic3.gov.
This advisory from August 13, 2025, highlights an ongoing challenge: fraudulent operations imitating legitimate legal services to exploit those already victimized by cryptocurrency crimes. Legal professionals and clients must work together to develop a proactive approach, reinforcing the necessity of scrutinizing unsolicited contact and verifying credentials thoroughly to prevent further victimization.
