In recent weeks, unsettling incidents have emerged involving physical harm related to cryptocurrency crimes extending beyond the virtual domain and into real-life scenarios. In a particularly alarming case, a man reported weeks of torture in a New York townhouse, while in Paris, another individual was held for ransom with the grim measure of having his finger severed. Meanwhile, a Connecticut couple endured a violent carjacking before being forcibly placed into a van. Authorities point to a disturbing trend where unregulated cryptocurrency activities, amidst their burgeoning value, have shifted from mere online thefts to involving outright violence.
John Griffin, a finance professor from the University of Texas in Austin who specializes in tracking financial crimes, highlights this as a manifestation of emboldened criminal activities within the crypto realm. He remarks on how actions that clearly defy usual societal norms in other settings appear to be emerging as common in this context, akin to robbing a bank.
The chilling accusations of kidnapping, burglary, and torture linked to cryptocurrency are exemplified by the arrests of John Woeltz and William Duplessie, two Americans allegedly involved in torturing a 28-year-old Italian man to extract his Bitcoin password, with their attorneys opting not to comment at this juncture. This disturbing revelation unfolds in the shadow of a federal indictment involving 13 individuals accused of merging computer hacking, money laundering, and physical burglary to siphon over $260 million from crypto accounts. In some instances, criminals employed digital tactics to infiltrate websites and databases, while others physically invaded victims’ homes to seize their crucial hardware wallets essential for accessing crypto assets.
This investigation was prompted by a harrowing event in Connecticut last year when a couple was violently evicted from their Lamborghini SUV, bound, and placed in a van. Authorities have identified this as part of a ransom plot targeting the couple’s son, allegedly involved in stealing more than $240 million in Bitcoin. Although the son awaits trial for a federal misdemeanor, his plight remains significant. The authorities interrupted the carjacking and apprehended six individuals tied to the crime.
Across Europe, similar appalling incidents have alarmed authorities and the cryptocurrency industry alike. French prosecutors recount troubling scenarios, like the kidnapping of a cryptocurrency entrepreneur’s father, brutally severing his finger with ransom demands to his son, followed by a daring police rescue. A foiled attempt to abduct Pierre Noizat’s daughter, the CEO of Paymium, vividly captures the escalating physical violence threats disrupting the crypto world. Earlier in the year, a daring police operation rescued David Balland, co-founder of crypto-wallet firm Ledger, and his wife, capturing ten gang members involved.
Amidst this backdrop, the FBI’s 2024 internet crime report sheds light on the breadth of cryptocurrency theft, with nearly 860,000 complaints and $16.6 billion reported losses in internet crimes, showcasing a staggering 33% uptick from the previous year. Victims of cryptocurrency theft account for a significant $6.5 billion portion of these losses, underpinning weak cryptocurrency regulations that facilitate anonymous, untraceable transactions, emboldening criminals.
TRM Labs, a focusing firm on crypto tracing, speculates increased violence driven by anonymity in transactions and increasingly accessible personal information online. Flashy displays of crypto wealth on social media only elevate risks, they assert. Phil Ariss of TRM Labs observes a trend where traditional criminal organizations, skilled in using violence, now perceive cryptocurrency as a lucrative target due to its mainstream allure. As a result, understanding physical threats within crypto necessitates evolving viewpoints.