eToro won’t directly recover stolen cryptocurrency once it leaves its platform because blockchain transactions are generally irreversible. However, if the theft occurs within eToro’s system, the company may be able to freeze funds before they are withdrawn.
As a regulated company, eToro also has obligations to maintain safeguards, and if those protections fail, you may have legal options to pursue compensation.
A cryptocurrency hacking and theft lawyer can help determine whether eToro or another party was negligent in protecting your assets and guide you through the process of seeking recovery. Read on to learn more about whether eToro can recover stolen crypto after you’ve suffered losses.
Why Cryptocurrency Can Be Difficult to Recover Without Legal Help
Three features of crypto make it difficult for eToro to recover stolen crypto. The features—irreversible transactions, pseudonymity, and decentralization—combine to make it extremely difficult to recover any crypto that has been stolen.
However, with a crypto lawyer from our firm, there may be hope.Â
Irreversible Transactions
Like the other features, irreversible transactions are intentional so that the crypto is protected against fraud. A public digital record called the blockchain stores all the transactions, but nothing can be edited until a number of people agree on an edit.Â
While this feature is usually beneficial against fraud, it makes it much harder to recover funds. However, on eToro’s regulated platform, the company still has some control over funds that are in its system.
Pseudonymity
Another feature of crypto that’s intentional is that transactions are linked to wallet addresses with pseudonyms rather than real identities.
But when you lose money due to hacking on eToro, the company may investigate suspicious activity within its own systems, and in some cases work with outside investigators to trace transactions.
Decentralization
This final feature combines the other two features and provides an explanation to the questions: Why are transactions permanent? And why do users have pseudonyms?Â
In traditional crypto environments, it operates on a peer-to-peer model, which can make it difficult to recover your money. However, eToro is a centralized, regulated platform that has control over your funds and may be able to help you before funds are withdrawn.
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How eToro Can Be Negligent With Your Crypto
When you trusted eToro to safeguard your crypto, you didn’t expect your funds to be stolen. However, because eToro acts as the custodian of your assets, the platform has a responsibility to maintain proper safeguards. If those protections fail, you may be able to pursue a claim for losses tied to their negligence.
One common issue is when eToro’s security systems fail to prevent unauthorized access to accounts. If hackers were able to move funds because of weak safeguards or delays in detection, the platform could be held accountable. Another form of negligence occurs when eToro doesn’t act quickly enough after you report suspicious activity.Â
Recovery options may be limited by eToro’s terms of service, the cause of the breach, and whether funds left the platform before action could be taken. Our cryptocurrency hacking and theft lawyers can review the circumstances and determine whether eToro’s handling of your funds was negligent.
What to Do After Your Crypto Has Been Stolen on eToro
After you’ve had crypto stolen from your eToro account, we understand that it can be difficult to know what to do next. Here are the steps that you should take after you’ve lost funds:
Contact eToro’s Customer Service
After you’ve had crypto stolen from your eToro account, the first step you need to take is contacting customer service. You can contact eToro by using the chatbot or live chat on their website. There are agents available from 8 a.m. to 8 p.m. EST to chat.Â
If you prefer a different way of contacting eToro, you can submit a ticket request that contains details about your stolen funds. You should be aware that eToro can only freeze assets still held within its own custody. Once funds are transferred to another firm, recovery becomes significantly harder.
The company may also keep your funds in what is known as a cold storage wallet, which is generally more secure. However, there is no blanket insurance provided by the FDIC as traditional currencies have. It depends on the platform’s policies and terms of service.
Collect Evidence
The next step after you’ve lost crypto is to document all the information you can. The more information you have, the higher your chances will be of recovering funds. You should document all the transactions in your account that show that your crypto was stolen. Make sure to include your wallet address, any suspicious activity, the date, and the time of each transaction.
You and your lawyer can build a stronger case when you have detailed information about the theft. Another type of evidence you should collect is any communication with eToro. This can include emails, calls, texts, and even in-person conversations, if you have any.Â
With communication records, our team can review the circumstances of the loss to determine whether negligence played a role and whether any form of recovery or compensation may be available.
From there, we can advise you on whether any recovery or compensation options may be available based on the facts of your case.
Our lawyers are nationwide leaders in investment fraud cases.
How a Cryptocurrency Hacking and Theft Lawyer Can Help You Recover Compensation
After you’ve gathered evidence, you should get in touch with our team and start building a case. Our team has the resources necessary to go up against big investment and crypto companies. And we’ve been doing it for 25 years at our firm.
Our team can guide you through the arbitration process required under eToro’s terms, where applicable. We will help you identify the losses you are eligible for and fight for you to recover them. We only take on a small number of cases so that we can focus on your case. We will advocate for you and identify the liable parties in your case and hold them accountable.
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Learn More About How to Recover Stolen Crypto From eToro
At Meyer Wilson Werning, our team of cryptocurrency hacking and theft lawyers can help you pursue compensation for losses tied to stolen crypto involving eToro. We are here to answer any questions you may have and fight for your rights.
Contact us for a free consultation.
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