If BTC remains as BTC and is never converted to fiat, is it more difficult to accuse someone of fraud? 
My friend was recently the victim of online fraud (in Canada) and we found (his dad's a lawyer) that even with an IP address, you are unlikely to be able to recover any losses because of the inability to prove the transmittal of funds (also the IP is in Europe).

Is this par for course with BTC?  How can we get around this?  In looking at ALL Bitcoin related heists and apprehensions, all suspects have at one point involved fiat with their business.  Is fiat the KEY to legal recourse?