Is trying to recover lost crypto assets worth it? Is it going to lead to more loss?
The red flag is simple, and it is if the recovery site ask you to send them (the recovery site) money (like bitcoin), that they will recover the coins for you, know that you have been scammed again. I mean those online recovery service.
99% of the online recovery services are scam. This is enough for people to learn how to do it by themselves.
What you said here is actually true, due to how people have been robbed in the process of trying to recover their lost wallet, any company that portray themselves as a company that recovers lost wallet needs to do more to win the trust of the general public because their is no guarantee that even if they succeeded in recovering the asset , they wouldn't run away with everything.
I saw a company that recovers lost wallet in this forum, they are keychainx, but I don't know if they are genuine or not, because I saw a thread about them here in this forum, though am still skeptical about them because they have not gain the full trust of the community, when I ask how much they charge for each services rendered, they said that they will be collecting 20% of anything that is in the wallet, so I don't know if you have heard about them before, and if they are genuine.