This article explains how Crypto Recovery in Bulgaria works, detailing the legal framework, challenges, and how OCONUS Investigations helps victims trace and recover stolen digital assets across Eastern Europe.
Crypto recovery in Bulgaria faces legal and enforcement challenges but is possible under national laws and the EU’s MiCA framework. OCONUS Investigations uses blockchain forensics, legal expertise, and regional experience to trace stolen assets and support victims through recovery. Bulgarian courts recognize crypto as property, and registered exchanges are required to cooperate with legal authorities. Despite hurdles, victims have a real chance of recovering lost funds with the right help.
Short on time? Here it is in brief:
Introduction
The borderless nature of the crypto industry exposes it to a wide range of regional challenges. Eastern Europe, a region of many jurisdictions and peculiar attitudes toward legacy financial systems, poses many potential problems.
Due to the unique technological, geographic, socioeconomic, and regulatory circumstances that define this region, it has become a hotspot for crypto crime. Bitcoin recovery and crypto recovery in general, face unique challenges in Eastern Europe. Read on to find out how crypto asset recovery works in this corner of the world.
Why has Eastern Europe become a crypto fraud hotspot?
Featuring a robust IT infrastructure and tech-savvy populations, Eastern Europe has long been a hotbed of illicit online activities. There are many reasons behind its current crypto crime status.
- Distrust in financial systems has primed the population to be more welcoming toward decentralized digital alternatives.
- Proximity to Russia, a crypto crime hotspot, makes Eastern Europe more vulnerable to crypto fraud, but also more likely to embrace it.
- Social engineering tactics have found fertile ground in Eastern Europe due to the high scam (PDF) site traffic the region generates.
- Economic vulnerability makes people more likely to turn to crypto fraud and fall victim to it.
- Regulatory gaps and a lack of interest in regulating digital assets are always attractive to cyber criminals.
- Skilled and IT-versed populations support legitimate innovation but also illicit activities like crypto fraud.
Crypto asset recovery in Eastern Europe always entails some intricate legal gymnastics. There is no uniform legal framework to deal with recovery. Not even the recently introduced EU-wide MiCA provides full clarity in this respect, as it doesn’t cover all countries of the region.
In addition to the legal ambiguity, cryptocurrency recovery specialists must also tackle:
- Issues stemming from cross-border transfers over several legal jurisdictions
- Problems with the identification of crypto crime perpetrators
- A focus on traditional fraud with not enough crypto expertise
- Challenges with enforcement and asset seizure
In Ukraine, crypto has been legal since 2022. The ongoing conflict in the country makes crypto recovery extremely difficult. Estonia is a tiny country. Wrapping up any crypto-linked fraud cases there requires international cooperation capabilities. While crypto-related crime is on the rise in Romania and Bulgaria, local authorities have more experience addressing traditional online fraud. This creates an ongoing need for more specialized crypto investigation tools and training to keep pace with evolving threats.
On the upside, EU member countries like Bulgaria and Romania benefit from Eurojust and Europol support facilitating cooperation against crypto crime.
Understanding Cryptocurrency Recovery in Bulgaria
Bulgarian laws on asset recovery define the legal maneuvering space for bitcoin recovery specialists. Although there aren’t any laws addressing digital asset recovery specifically, the current laws do allow recovery.
How Bulgarian Law Recognizes Crypto Ownership
Under the Bulgarian Code of Civil Procedure, crypto assets like Bitcoin represent property. As such, creditors can recover these assets similarly to bank accounts, real estate, and movable assets. The problem with pursuing this legal avenue is, however, that digital assets are pseudo-anonymous, and locating the private keys to access these assets presents challenges the CCP doesn’t address.
The Property Act designates intangibles like crypto assets subject to seizure in cases involving debt enforcement and non-payment.
Furthermore, the Personal Income Tax Act requires people to pay a 10% tax on revenues obtained from the sale of their crypto assets. Tax declarations on crypto-generated income may allow authorities to trace crypto assets and seize them if required.
The Role of Exchanges, Wallets, and Blockchain Transparency
Wallets, exchanges, and other crypto service providers must collect KYC information on their clients. They may also provide information on their clients’ crypto assets if legally subpoenaed by authorities as part of a criminal investigation. All custodial wallet providers, trading platforms, exchanges, and even crypto advising firms must comply with the AML and KYC requirements of the EU-wide MiCA.
Differences between Fiat Asset Recovery and Crypto Asset Recovery
Fiat asset recovery is governed by purpose-built, established, and well-entrenched laws. Crypto recovery, on the other hand, despite the increasing legal clarity, is still somewhat rudderless and lacking in enforceability in cases where self-custody is involved.
Bitcoin and Crypto Recovery under Bulgarian Law
Coming to the aid of Bulgarian laws regarding cryptocurrency recovery is the EU’s Markets in Crypto-Assets Regulation (MiCA). It provides a modern legal framework specifically addressing the issue of digital assets.
Markets in Crypto-Assets Regulation (MiCA) and Its Impact
MiCA is an EU-wide set of laws regulating digital assets and services tied to the industry. It provides legal clarity and consumer protections while safeguarding market integrity and financial stability. It also supports innovation and harmonizes crypto regulations across the bloc.
MiCA’s legal requirements mostly concern entities that provide crypto services like:
- exchange
- trading
- custody
For its regulatory purposes, MiCA recognizes three digital asset categories:
- Fiat-pegged digital assets
- Asset-backed tokens
- Cryptocurrencies and utility tokens (popular assets like Bitcoin and Ethereum are in this category)
Its provisions do not cover NFTs and some DeFi protocols that already qualify as financial instruments outside MiCA’s scope.
MiCA’s effects on Bulgarian crypto laws are profound. The EU-wide framework supplants a patchwork of less-than-adequate laws, providing:
- A unified licensing regime through the Bulgarian Financial Supervision Commission
- Enhanced powers to supervise digital asset-related service providers
- Stricter rules and supervision over stablecoins and stablecoin issuers, including liquidity reserves
- Cross-border market access for MiCA-compliant Bulgarian crypto service providers
- Liability provisions and other protections for Bulgarian investors
Asset Foreclosure and Crypto Seizure Procedures
Its reach and efficacy enhanced by MiCA, the Bulgarian legal system facilitates crypto recovery in many ways.
Bulgarian courts recognize crypto as property when proof exists regarding possession. For example, if someone pays income tax on revenue generated through a crypto asset, it is relatively straightforward to ascertain ownership of the said asset.
MiCA’s provisions enhance the powers of the Bulgarian legal system regarding crypto recovery by:
- Helping distinguish between digital asset classes
- Mandating and enforcing CASP obligations
- Holding CASPs liable for losses resulting from misinformation
- Requiring CASPs to observe strong AML and KYC policies
- Enabling national or supra-national authorities to liquidate reserves and freeze assets
- Enabling investors from one country to seek recovery from another country under MiCA’s purview
AML and KYC regulations generate information on crypto actors, allowing investigators to effectively trace the path of pilfered funds through several blockchains and crypto ecosystems.
The legal pathways of crypto recovery in Bulgaria lead through the court system, governed by the Code of Civil Procedure, Property Act, Measures against Money Laundering Act, and tax laws. MiCA lends this legal patchwork structure, scope, and direction.
How Crypto Asset Recovery Works in Bulgaria
MiCA’s provisions concerning information-gathering about crypto users and money laundering prevention can help investigators trace funds and identify wallets for recovery.
Locating and Tracing Stolen Crypto
Many digital assets (like Bitcoin) are pseudo-anonymous. Others (like Monero) are fully anonymous. Tracing the movement of funds through these blockchains is difficult but not impossible. Our investigators possess the tools and know-how to trace the assets and link the wallets in which they land to real-world identities.
Blockchains serve as public ledgers for transactions. Our blockchain forensic tools extract information directly from the blockchain, including but not limited to wallet addresses, timestamps, and transaction amounts. Experts then complete this information with off-chain data from open-source intelligence and KYC information from MiCA-compliant service providers.
Seizing Cryptocurrency from Debtors
Once criminals and their crypto holdings have been identified, investigators take the recovery process into the Bulgarian legal arena. Here are the steps they must navigate to obtain a seizure order:
- Creating a legal basis for the claim in the form of a court judgment or identifying an unpaid debt
- Requesting security for a claim based on Articles 389-404 of the Code of Civil Procedure
- Filing an application with the district court where the debtor resides
- Providing evidence of the debtor’s ownership of the assets
- Demonstrating risk to obtain precautionary seizure
- Engaging a private or public bailiff to begin execution by serving seizure notices to debtors and service providers
- Getting the bailiff to demand the private keys of self-custody wallets under the threat of criminal penalties
Debtors and service providers who refuse cooperation risk criminal penalties under the Penal Code for obstructing enforcement.
The Role of Cryptocurrency Exchanges in Asset Recovery
Legally operating cryptocurrency exchanges are listed in Bulgaria’s AMLA registry. All such service providers are legally compelled to respond to bailiff-delivered notices, freeze debtor’s accounts, and report the balances.
Exchanges in the registry should also be able to provide data about the identity of the debtor.
Bitcoin Recovery Challenges in Eastern Europe
Most of Eastern Europe (EU member countries) falls under the purview of MiCA. MiCA can, therefore, boost recovery efforts in this region, but challenges remain.
Differences in Crypto Laws across Eastern Europe
Eastern European countries like Bulgaria, Romania, and Poland rely on their respective Code of Civil Procedures to create a basis for crypto recovery efforts. Romania also uses an Emergency Ordinance (No. 111/2020) to deal with digital assets. All three countries require CASPs to register with their AML registries. All three enjoy the benefits and protections MiCA offers.
The same is true of other EU member countries in the region like Hungary, Czechia, and Slovakia.
Ukraine’s Law on Virtual Assets governs crypto dealings within the country. In Ukraine, virtual assets are explicitly recognized as property. The wartime reliance of the country on crypto has sparked a better harmonization of the recovery framework with the legal system.
Serbia has thus far failed to regulate exchanges, or to clarify crypto’s legal status.
In all countries, recovery efforts targeting private wallets meet considerable challenges. The evidence burden lies with those pursuing recovery. Enforcement gaps also remain.
Decentralized exchanges (DEXs) do not collect KYC information. Users can, therefore, move funds to and from such exchanges anonymously, hindering recovery efforts.
Common Crypto Scams and Fraud Cases in the Region
Eastern Europe is an attractive region for crypto scammers. Ponzi schemes, rug pulls, pig butchering scams, and fraudulent trading platforms have been making the rounds, seasoned with a mix of hacking and phishing.
Between 2019 and 2021, the Finiko Ponzi scheme, active in the Russian-speaking countries of Ukraine and Russia, stole Bitcoin worth more than $1.5 billion from victims.
In early 2025, a Moldovan priest lost around $32,000 to a fraudulent trading platform scheme.
One of crypto’s most notorious scammers, Ruja Plamenova Ignatova, of Bitconnect fame, was also born in Bulgaria.
Crypto scammers operating in Eastern Europe are knowledgeable and well capable of hiding the proceeds of their criminal activities through privacy coins and crypto mixers.
How OCONUS Investigations Can Assist with Crypto Recovery in Bulgaria
Recovering crypto losses traced back to Eastern Europe is challenging. We at OCONUS Investigations understand the scope of this challenge and have valuable experience in this sense.
Investigative Techniques for Bitcoin Tracing
Our investigators are versed in blockchain analysis techniques and human intelligence gathering to bring you the best possible cryptocurrency recovery results in Bulgaria. Our blockchain analysis methods cover:
- Transaction tracing and flows. We identify transaction amounts, timestamps, and wallet addresses.
- Clustering. We identify multiple addresses controlled by the same entity and de-anonymize its activities.
- Heuristics. We dissect transactions, identifying balances and destinations by looking at details like leftover funds returned to senders, etc.
- Data integration. We integrate blockchain data with off-chain information we collect legally from CASPs.
- Visual network mapping. We use the information to create visualizations of transaction clusters, destinations, and paths.
Beyond blockchain analytics, we use the following intelligence strategies:
- Open-source intelligence. We collect relevant information from forums, social media, darknet marketplaces, etc.
- Human intelligence. We collaborate with law enforcement, informants, and expert advisors.
- We maintain and develop new partnerships that give us access to new proprietary algorithms and attribution methods.
- Real-time monitoring. We have access to real-time alerts about suspicious transactions and address use.
Understand that sometimes an investigation will only lead to possible suspects with less certainty.
Legal Support for Crypto Recovery Cases
Once the funds are found and the perpetrators are identified, we create a legal basis for the recovery. We are not a law firm and will not request security for the claim or help clients file an application. We continue working with clients, providing evidence and expert testimony where required.
OCONUS Investigations provides investigative support and works in conjunction with licensed legal professionals. We do not offer legal representation or make guarantees regarding asset recovery outcomes.
Private investigation can only help you identify your stolen funds and the thieves. The actual recovery requires legal representation and a legal approach. Always report the crime to law enforcement as soon as possible.
Crypto Recovery Success Stories in Eastern Europe
In 2019, scammers operated fraudulent investment schemes out of Sofia and Burgas in Bulgaria. Targeting Greek and German victims, they raked in at least EUR 10 million before authorities cracked down. Investigation of the criminal activities began in 2019. By the end of 2021, authorities had collected enough intelligence to wrap up the case.
Europol-supported blockchain forensics located some of the crypto funds the victims had sent the scammers. A Polish retiree, who had lost EUR 150,000 in Bitcoin to the scheme, hired a crypto-tracing company, which succeeded in tracing some of the digital funds to a Sofia-based exchange.
In January 2022, Bulgarian law enforcement moved against the criminals. Police arrested the main suspect and raided 24 locations. They managed to recover EUR 35,000 of the Polish retiree’s lost funds.
In May 2017, Bulgarian authorities traced the proceeds of a customs fraud case to some Bitcoin wallets. Subsequently, they recovered and seized some 213,000 Bitcoin, turning Bulgaria into one of the largest Bitcoin-holding states.
According to speculation, if the price of Bitcoin were to reach $1 million, Bulgaria could pay off its external debt from this haul, provided it still holds the stash.
OCONUS can help international clients recover their crypto assets lost to scammers in Eastern Europe by tracing the funds, identifying the scammers, and engaging local justice departments and law enforcement to execute legal recoveries.
Steps to Take If You Need Crypto Recovery in Bulgaria
So you had 5 Bitcoins and lost them to a scam. You believe the scammers who have relieved you of your precious digital assets operate out of Bulgaria. What do you do?
Immediate Actions to Recover Stolen Cryptocurrency
As soon as you realize you’ve been scammed, do the following:
- Secure your remaining digital assets by moving them to an uncompromised location.
- Check for malware and change PINs.
- Contact your local law enforcement and report the crime.
- Gather transaction records, emails, and records of communication you had with the scammers.
- Do a DIY tracing attempt by using a free blockchain explorer. Document your findings and save them.
Following immediate damage control, it is time to seek professional help.
Hiring a Crypto Recovery Specialist
Bulgarian crypto recoveries entail special, region-specific challenges. When looking to hire a crypto recovery firm, ensure that it meets the following criteria:
- It has solid blockchain forensics expertise to trace your assets.
- It can navigate the legal and regulatory landscape of the jurisdiction where the theft occurred.
- It has regional experience in Bulgaria, with contacts in law enforcement, local exchanges, and courts.
- It produces court-admissible evidence you can use to issue warrants and seize assets.
- It has a proven track record in Bulgaria.
- It has certifications and a spotless reputation.
Bear in mind that you are most likely to recover your funds if they go through a regulated Bulgarian exchange. If your stolen assets land in a private wallet, the outcome of the recovery effort hinges entirely on the ability of local authorities to convince or compel the criminals to cooperate.
Conclusion: The Future of Crypto Asset Recovery in Bulgaria
The legal framework upon which crypto recovery currently rests in Bulgaria and its neighboring Romania is shaky and less than ideal. It relies on potentially inadequate legal pillars like the Code of Civil Procedure. MiCA certainly helps, but it still leaves plenty of room for legislative improvements.
Legislative Improvements Needed for Stronger Crypto Protection
Here’s how Bulgaria could improve its crypto protection and recovery:
- Clarify the legal standing of cryptocurrencies and other digital assets by defining them explicitly as seizable property.
- Levy meaningful penalties on refusals to disclose private keys in legal asset seizure cases, including a “good faith” clause to protect privacy.
- Streamline exchange accountability and asset freezes. The current system leaves too much time for thieves to withdraw or move the stolen funds.
- Empower Bulgarian courts to issue provisional account freezes on foreign exchanges provided they secure the cooperation of local authorities.
- Offer rewards for reporting crypto crime and seeking recovery. The legal system could offer victims reduced legal costs or tax breaks for pursuing crypto recovery through Bulgarian courts.
- Ban unlicensed crypto mixers and levy strict KYC requirements on privacy coins like Monero.
These legal moves could disrupt Bulgaria’s status as a scam hub, and make incidents like the call centers and One Coin forgotten. They might also make it easier for crypto recovery firms like OCONUS to find criminals and return stolen assets to their owners.
How OCONUS Investigations Can Help
OCONUS Investigations provides a unique mix of blockchain forensics expertise, legal know-how, and Bulgaria-specific experience. We can:
- Trace your stolen crypto assets and identify the criminals behind the wallets that hold them
- Collect court-admissible evidence and prepare a compelling report to help your legal case
- Help you make your legal case and initiate court proceedings against the thieves
- Help Bulgarian authorities freeze accounts and recover stolen digital assets
- Propose legislative upgrades and support national crypto recovery capabilities.
- Liaise effectively with various branches of the Bulgarian legal and law enforcement systems.
The bottom line is that we are the best digital asset tracing team in Bulgaria and Eastern Europe. If you lose money to Eastern European crypto scams, we are your best option.
Contact us for a free consultation and assessment of your case. Our address is 87 Vladayska Street, District Krasno Selo, Sofia 1606, Bulgaria. Drop us an email at bulgaria@oconusinvestigations.com.
Don’t let criminals get away with your hard-earned digital valuables. Contact us for a free consultation today.