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  A crypto token is a virtual currency token or a denomination of a cryptocurrency. It represents a tradable asset or utility that resides on its own blockchain and allows the holder to use it for investment or economic purposes. It has been widely accepted as a form of currency asset across the globe.
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In this digital age, cryptocurrency has come to stay despite the scepticism that surrounds it. It is generally believed that cryptocurrency is secured, however, over the past few years, we have experienced a security breach, and defrauding of users by cyber terrorists and online scammers. Furthermore, these breaches of security can lead to stolen tokens. Stolen or lost tokens are one of the most recurring problems in FinTech, and even top traders get their tokens stolen or lost. In the early years of crypto trading, recovering lost or stolen tokens seemed impossible. However, experts have been able to unlock this mystery. In this article, we shall top four ways to recover stolen or lost tokens.

  1. Be Proactive

The recovery of stolen or lost tokens is still in its infancy. However, Benjamin Sauter, an expert in crypto theft and a partner in Kobre & Kim, stated that first aid for stolen crypto is not to trace stolen tokens but to ask your exchange company to freeze your account. He stated that the more you leave your account running the chances these thieves get in transferring your asset to a cold wallet. He further suggested that getting your exchange company to freeze your account might be difficult, but with legal backing, you can get them. In order to ensure that you get back stolen tokens you must have traded on a blockchain-enabled and cloud-powered platform to track theft and sue appropriately. With the help of Know Your Customer (KYC), you track wallet addresses.
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  1. Use Cold Wallets

Another way to recover stolen tokens is by using cold wallets. Cold wallets are offline wallets that are designed for storing tokens. Due to the fact that these wallets are offline or without internet connectivity, they can’t be hacked. There are various models for recovering tokens from cold wallets. They include,
  • Paper Wallets: The details of your wallet can be documented and stored away in a secret vault or safety deposit boxes. This might look old-fashioned but you’ll have your valuable information stored away from the eyes of hackers.
  • Encrypted Devices: These types of cold wallets could be phones and laptops which are encrypted, and can be stored and accessed in your key private information.
  • Pen Drives/Hard Drives: This is a very secure way of storing your tokens because you can retrieve data from them. However, these drives can be corrupted or damaged.

  1. Use Reclaim And Report Tools

Using reclaim and report tools like ReclaimCrypto is another way to recovery stolen tokens. Although this solution is new and nascent, yet the company is offering solutions for recovering stolen tokens. ReclaimCrypto is an initiative put up by Coinfirm, a Blockchain Analytics company, and a global investigation firm Kroll. ReclaimCrypto combines the latest blockchain forensic techniques with the world of legal investigation and asset recovery. ReclaimCrypto aims to help in the recovery of stolen cryptocurrency. You can submit an initial form with the data about your stolen coins, and ReclaimCrypto will do an assessment. You’ll only be charged a success fee on the crypto they recover for you, not for the initial assessment!

  1. Check Your Devices For Malware

Ensure the devices you use for transacting crypto are free from malicious software infections that can cause important data to be exposed to cyber-attacks. Occasional scanning of your devices is advised. In order to remove malware, you can visit Featured Image Source: SoFi
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This article was first published on 20th November 2021 and updated on November 22nd, 2021 at 12:28 am

nnaemeka-emmanuel

Nnaemeka is an academic scholar with a degree in History and International Studies from the University of Nigeria, Nsukka. He is also a creative writer, content creator, storyteller, and social analyst.

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