Crypto traders are increasingly becoming targets for kidnappings and extortion, as highlighted by several alarming cases reported in recent weeks.
In France, police rescued a man found tied up in the trunk of a car in Le Mans after his captors made a ransom demand to his son, a crypto influencer living in Dubai, according to France Bleu Normandie, a local French outlet.
The incident, which occurred on the night of Jan. 1, saw officers from Le Mans intercepting a stolen vehicle at a gas station. Upon opening the trunk, they discovered a disoriented 56-year-old man doused in gasoline.
The victim recounted that masked assailants broke into his home on New Year’s Eve, tied him and his wife up, and transported him nearly 500 kilometers across the country. Using encrypted networks, the captors demanded a ransom from his son.
The perpetrators managed to flee the scene, and an investigation is ongoing.
Bitcoin’s record surge spurs rise in crypto crime
On Dec. 17, Bitcoin (BTC) hit an all-time high of $108,135, drawing increased attention to the crypto sector.
The soaring value of the crypto market, which has skyrocketed from $1 trillion to $3.64 trillion in the past year, has attracted criminals seeking to capitalize on the boom through ransomware, kidnappings and extortion schemes.
In Pakistan, seven individuals, including a Counter-Terrorism Department officer, were arrested on Jan. 3 for kidnapping a local crypto trader.
The victim, Mohammed Arsalan, was abducted from Manghopir, Karachi, on Dec. 25. According to Dawn, the kidnappers forced him to transfer $340,000 via his Binance account before leaving him near the mausoleum of Quaid-i-Azam Mohammed Ali Jinnah.
A first information report (FIR) was filed under Pakistan’s Penal Code for kidnapping and extortion.
Crypto trader abductions in Australia and Canada
In Australia, a Saudi royal was lured into a kidnapping plot through a dating app. The Daily Mail reported that Catherine Colivas, a 24-year-old woman, lured the royal to her home, where three men, including her boyfriend, ambushed him. The victim was tied up and threatened with having his fingers cut off unless he transferred $40,000 in Bitcoin.
Despite pleading guilty to kidnapping, extortion, and theft, Colivas avoided jail time. On Dec. 16, she received a 30-month community corrections order. The judge cited her mental health, difficult upbringing, and the recent death of her brother as mitigating factors.
Meanwhile, Toronto police are still investigating the kidnapping of Dean Skurka, CEO of WonderFi, a Canadian crypto exchange. Skurka was abducted in downtown Toronto during rush hour on Nov. 6 and released after a $1 million ransom was electronically paid, according to CBC News.
Ransomware payments exceeded $1 billion in 2023
Ransomware gangs extorted over $1.1 billion in cryptocurrency payments from victims in 2023, according to data from blockchain analytics firm Chainalysis.
“The ransomware landscape is not only prolific but continually expanding, making it challenging to monitor every incident or trace all ransom payments made in cryptocurrencies,” Chainalysis analysts noted.