Crypto Theft Victim Faces Lawsuit from Recovery Firm Over Unpaid Fees
On Monday, June 23, 2025, Law.com reported that Robert Thompson, a victim of cryptocurrency theft, is facing a lawsuit in New York from the firm that assisted him in recovering his assets. The firm, AMLBot, a digital asset recovery company based in Hong Kong, claims Thompson failed to pay a 20% success fee after they helped trace and recover his stolen cryptocurrency, valued at $5 million.
Thompson first reached out to AMLBot when he noticed the disappearance of his funds, opting for the recovery firm’s services instead of involving law enforcement. AMLBot asserted it successfully traced the stolen cryptocurrency and identified the perpetrator, leading Thompson to initiate legal action against his romantic partner in the Philippines, whom he alleges held the stolen assets.
Despite the recovery claims, AMLBot contends that Thompson has not compensated them for their work. The lawsuit, filed in Manhattan federal court, seeks over $1 million, which represents the unpaid success fee. The firm has accused Thompson of breach of contract, fraud, and conversion, asserting that he deliberately avoided payment for the services rendered by AMLBot.
The digital asset recovery industry has seen significant growth, paralleling an increase in cryptocurrency-related fraud. The FBI reported losses exceeding $5.8 billion due to crypto investment fraud in 2024, marking a 40% increase from the previous four years. As regulatory bodies struggle to address the surge in cases, numerous recovery firms have emerged, some of which are reputable while others are criticized for predatory practices.
Scott Armstrong, a former senior leader at the U.S. Department of Justice specializing in cryptocurrency cases, noted that victims often face a secondary victimization by paying upfront fees to recovery firms. He explained that the initial phase of asset recovery involves tracing stolen cryptocurrency through blockchain forensics, which is relatively straightforward. The more challenging aspect, according to Armstrong, involves seizing and forfeiting those assets across various jurisdictions.
AMLBot’s complaint indicates that they operated on a contingency basis, meaning they would only receive payment if Thompson successfully recovered his funds. They provided 24/7 monitoring, strategic advice, and tracing services, claiming their efforts ultimately led to the identification of the suspect linked to the theft.
The lawsuit filed by AMLBot is currently pending before U.S. District Judge Analisa Torres in the Southern District of New York. The firm is also pursuing punitive damages, characterizing Thompson’s actions as a calculated attempt to evade payment for their services.
Source: Law.com
