My Bitcoin Was Stolen: A Canadian Step‑by‑Step Recovery and Response Plan

Losing Bitcoin to theft or fraud is overwhelming. The blockchain makes transactions transparent but not always reversible. This guide walks you through a practical, legally informed, and technical response plan tailored for Canadians but useful worldwide. You will get immediate steps to contain damage, how to collect and present evidence, who to contact (exchanges, banks, police, and anti-fraud centres), and realistic expectations about recovery. No promises of magic; just a clear checklist you can act on right now.

Quick checklist: What to do in the first 24 hours

  • Stop all communication with suspected scammers or counterparties.
  • Record transaction details: TXIDs, wallet addresses, timestamps, amounts, networks.
  • Take screenshots of wallet history, messages, emails, and payment confirmations.
  • If funds moved from or to an exchange, gather account IDs, KYC names, and support ticket numbers.
  • Alert your bank (if Interac e-transfer or wire used) and place fraud alerts on accounts.
  • File a police report and report the incident to the Canadian Anti-Fraud Centre.

1. Immediately preserve evidence

The single most important thing is preserving immutable evidence. That means capturing everything before anything changes. Blockchains are public, but screenshots and exported CSVs from your wallet or exchange are essential for investigators and for convincing platforms to act.

What to capture

  • Transaction IDs (TXIDs) and full wallet addresses for each outgoing and incoming transfer.
  • Timestamps in ISO format (e.g., 2025-10-16T12:34:56Z) and the timezone you were in when the transfer happened.
  • Screenshots of wallet UIs, exchange trade history, emails, chat logs, and any approval popups.
  • Bank statements, Interac e-transfer notifications, and receipts for fiat transfers used to buy crypto.

Export CSV files from exchanges and wallets when possible. These exports provide machine-readable proof that investigators prefer.

2. Monitor the stolen funds and set a watch

Use a block explorer to follow the path of stolen coins. Create a watch-only wallet or address monitor so you can observe movement without exposing keys. Note that thieves often use address clusters, mixers, bridges, or chain-hopping to obfuscate funds. Document every hop and update your evidence bundle.

3. Contact the exchange or service that received the funds

If the stolen coins touch a regulated exchange or broker, your best short-term hope is to get that platform to freeze accounts and preserve funds. Exchanges operating in Canada are registered as virtual currency MSBs and must follow AML/KYC reporting rules; they also routinely cooperate with law enforcement when presented with a police report and legal process. Be prepared to supply a police report number and all evidence you gathered. Document every support ticket and correspondence you send.

Canadian AML rules require virtual currency MSBs to file large virtual currency transaction reports for transfers equivalent to 10,000 CAD or more, and registration with FINTRAC remains mandatory for businesses that provide virtual currency exchange or transfer services to Canadians. This regulatory framework is why exchanges can act to freeze or flag suspect accounts when given credible information and a law enforcement request. citeturn0search5

4. Report to police and the Canadian Anti‑Fraud Centre

File a report with your local police immediately and ask for a report number. The RCMP and provincial forces increasingly treat crypto theft as a priority; several recent operations show law enforcement can trace and even recover crypto when they coordinate with exchanges and blockchain intelligence providers. Include your export files, screenshots, and a clear timeline in your police submission. citeturn0search1turn0search4

Also report the theft to the Canadian Anti‑Fraud Centre (CAFC). The CAFC aggregates complaints, identifies trends, and supports law enforcement; reporting helps ensure your case is on official radars used in cross-agency operations. citeturn1search4

5. Be realistic about recovery and the timeline

Recovery is technically possible but rarely fast or guaranteed. Successful recoveries typically involve coordinated action: law enforcement seizes funds at an intermediary exchange or service, or investigators identify a centralised cash-out point. Blockchain analytics firms and public-private operations have produced recoveries, but these efforts require time, legal authority, and cooperation across borders. Expect weeks to months, and in complex international cases it can take years. citeturn3search1turn3search4

6. Engage the right partners

Law enforcement

Police are your entry ticket to legal remedies. Provide them your evidence package, be available for follow-up, and insist that investigators escalate to specialized units (financial crimes, cybercrime or RCMP virtual assets teams) if available. Recent Canadian initiatives like Operation Avalanche demonstrate the value of coordinated regulatory, law enforcement, and industry responses to crypto scams. citeturn1search8

Blockchain forensics and private investigators

Blockchain intelligence firms can map the flow of funds and identify exchanges or services receiving stolen coins. These firms usually work through law enforcement or retained legal counsel; be wary of recovery companies that demand upfront payment in crypto, as these can be scams. If you hire a private investigator or forensic firm, request clear engagement terms, references, and an explanation of likely outcomes and fees.

Legal counsel

Consult a lawyer experienced in financial crime and crypto asset recovery. Legal counsel can draft preservation requests, liaise with exchanges, and support civil remedies if a culprit is identified. If your case involves large sums, a lawyer can coordinate with your bank, the police, and forensic providers.

7. Practical templates and wording to use with exchanges and banks

When you contact an exchange, be concise and factual. Provide: transaction IDs, wallet addresses (sender and destination), time and date, amount, and your police report number. Ask the exchange to preserve logs and temporarily freeze any accounts receiving funds. For banks, explain any fiat transfers (e.g., Interac e-transfer) were part of a fraud and request an investigation; banks can sometimes provide additional KYC details to investigators under legal process.

8. Watch out for follow‑on scams and recovery fraud

Scammers often re-target victims offering