The problem with decentralized money is that there is no bank manager, bank owner or person in charge who you could complain to. The currency is lacking in this department currently. This means that in the status quo there is no way to get your message across to the bitcoin makers that your funds have been stolen. The best bet is contacting your exchanging, then to trying to understand where the breach took place.
This is mostly either by losing your private key, or at a larger extent by a breach at the exchange itself or because of vulnerabilities in your wallet.
Cryptos are safe enough if your handling is careful enough.
If you see faulty activity, you can ask your exchange to block it, you need to call them ASAP IMMEDIATELY and report it as an unauthorized/fraudulent transaction. This includes making deposits to purchase tokens, but not receiving tokens back, or depositing fiat currency into a mining/Ponzi scams, or malicious scheme that you did not pay to but your software might have resulted in direct charges on your credit/debit card or transfers from your bank account.
The sooner you report, the higher the chance the charge may be reversed. Even though reversing cryptos is a very complex and sometimes impossible idea. Most financial institutions give you 1-3 months after the charge has been made to report unauthorized transactions. This varies tremendously for cryptocurrency.
Authorities need tips and reports to build up cases against criminals, so at least you could help in promoting or assisting them in criminal investigations. You should also report it to the police. This means that who you report will be based on your regional and geographical location.
In July 2017, one Chinese Bitcoin investor woke up to find 188 BTC was withdrawn from his wallet and reported the case to the police. The investor met the scammer through WeChat he was caught and then arrested. The arrest led to the recovery of the money.
For the bounty, you can set a fixed coin price or a percentage of your returned funds. Since the bounty will not be paid out until the return of the funds, it is a rather low-risk attempt.
An opportunity to catch the scammer is to follow the money trail through blockchain explorers and trace your lost fund. The thieve will try to recover the money on most popular exchanges, one would need to submit KYC (Know Your Customer) information, such as names, addresses, and ID information. This means that you can crack the whole case and at least punish them for what they did.
Contacting the exchanges can potentially help you to track down the scammer’s identity, which can help to lead to his/her arrest. Always important! Always important.
Any other ideas? Share them and help a brother find out where his cryptos went!