I'm new so please forgive me if I'm just not getting this. I have done nothing wrong. I did all the 2fa all recovery phrase I was told to do. I wake up to see 1200 dollars in crypto just gone from my account. It's weird the moment I set my recovery phrase was when my money disappeared. Blockchain hasn't said anything but oh well this is what happens. So I do all the things I'm supposed to and I lose money that I don't have with noone to help me get it back? I mean if I have to send in all my identity documents doesn't everyone? I see where it was sent cause it's public and NOONE can tell this thief that they need to give my funds back? I'm not well and my husband isn't well at all. We received this money as payment for work my husband done on a house we been waiting for and it's just gone and nobody can tell me anything. I didn't get an approval from blockchain for entering my account no sms verification code sent to my phone. So is it blockchain itself? Just glancing at messages I see blockchain alot with this issue. I'm devastated I don't know what to do. I hoped maybe I sent to a offline storage or something but I have no idea. Can anyone please tell me what happens when you set up the recovery phrase did that automatically send my coins somewhere or did I just get robbed? I just want to stop wondering and get past this and leave cryptocurrency alone
How is blockchain not responsible for someone stealing my Bitcoin?
Many people have asked similar questions here concerning theft and recovery but I think the question of responsibility is a good one.
This answer makes a few digressions but I hope by reading to the end, the issue of responsibility will be clearer.
Can anyone please tell me what happens when you set up the recovery phrase did that automatically send my coins somewhere
No. That wouldn't be normal.
Control of cash
It is probably useful to clear up a few basics.
If you live in the USA, when you go to a coffee shop and pay cash in paper dollar bills or coins for a cup of coffee, this obviously does not involve the car rental business called Dollar (website: dollar.com) even though you are paying in dollars. If there was a bank called Dollar Bank Inc, your use of paper dollar bills and coins to buy a cup of coffee would have nothing to do with them.
Businesses like blockchain.com or bitcoin.com are not in control of bitcoin. Just as dollar.com is not in control of the US dollar. You don't have to use those businesses (or any others) to use bitcoins (or dollars)
Bitcoin was created as electronic cash that does not depend on trusted third parties like banks.
From what you write, you chose to give your money to a company named blockchain.com. If you are unhappy with their service or feel they have failed to take proper care of the money you gave them, that is something that you must take up with them. No-one else has any special inside knowledge of what that business does.
It's weird the moment I set my recovery phrase was when my money disappeared.
It seems likely that someone else saw that recovery phrase and used it to take control of your money and spend it. Maybe your computer or phone has been infected with malware that lets a criminal spy on your use of it using a software keylogger or some other malicious technique.
I see where it was sent cause it's public and NOONE can tell this thief that they need to give my funds back?
That is correct. Bitcoin is mostly anonymous. You can see an address where money was sent but there is no central registry of who controls which addresses. The addresses all look like random numbers. Bitcoin is a peer-to-peer cash - which means there is no central authority who can intervene to reverse transactions.
This is the nature of cash. If you are walking through a train station or airport and a pickpocket removes a paper $5 bill from your pocket without you noticing. The next day there's no government agency and no bank you can ask to press a button that will put that paper $5 bill back into your pocket. Cash doesn't work like that.
If you feel you have evidence you have been robbed. you should report it to your local police. That's what you would do if a pickpocket stole the cash in your pocket.
You will get lots of offers for help but all of them will be from conmen and scammers who are trying to get you to trust them so they can trick you out of more money. They will eventually try to confuse and panic you by talking about refund fees, release fees or the need to prime a wallet with money and lots of other lies.
One chance to get the funds back would be catching the scammer with analytical methods. Not all companies offering this are scamming (I program for two companies doing it honestly) but the warning is important because at least 90% offering this are scammers. You recognize them because they give great promises before investigating the case. E.g. if the scammer didn't move the coins yet then in most cases it's too early to investigate. And even after a successful analysis it could be that the scammers jurisdiction isn't cooperating to yours.
In your specific case I would not try to trace the scammer (for costs risks because you'd need to pay the analytics company and later a lawyer). Just report the evidences to police in case there were other victims with higher losses and they caught the scammer already somewhere or if they will catch him in future.
Wish you luck to get the funds back!