Crypto traders are facing an increasing risk of being kidnapped and extorted, as evidenced by several alarming cases that have been reported in recent weeks.
In France, police rescued a man who was found tied up in the trunk of a car in Le Mans. The man’s captors had demanded a ransom from his son, who is a crypto influencer living in Dubai. According to France Bleu Normandie, a local French outlet, the incident occurred on the night of January 1. Officers from Le Mans intercepted a stolen vehicle at a gas station and discovered the disoriented 56-year-old man doused in gasoline when they opened the trunk.
The victim explained that masked attackers had broken into his home on New Year’s Eve, tied him and his wife up, and then transported him nearly 500 kilometers across the country. Using encrypted networks, the captors demanded a ransom from his son. The perpetrators managed to escape, and an investigation is currently underway.
The surge in Bitcoin’s value has led to an increase in crypto-related crimes. On December 17, Bitcoin reached an all-time high of $108,135, drawing more attention to the crypto sector. The skyrocketing value of the crypto market, which has grown from $1 trillion to $3.64 trillion in the past year, has attracted criminals who are seeking to take advantage of the boom through ransomware, kidnappings, and extortion schemes.
In Pakistan, seven individuals, including a Counter-Terrorism Department officer, were arrested on January 3 for kidnapping a local crypto trader. The victim, Mohammed Arsalan, was abducted from Manghopir, Karachi, on December 25. 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.
In Australia, a Saudi royal fell victim to a kidnapping plot orchestrated through a dating app. 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. Colivas pleaded guilty to kidnapping, extortion, and theft, but she was spared jail time. On December 16, she received a 30-month community corrections order, with the judge citing 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, the CEO of WonderFi, a Canadian crypto exchange. Skurka was abducted in downtown Toronto during rush hour on November 6 and was released after a $1 million ransom was electronically paid, according to CBC News.
According to data from blockchain analytics firm Chainalysis, ransomware gangs extorted over $1.1 billion in cryptocurrency payments from victims in 2023. Chainalysis analysts noted that the ransomware landscape is not only prolific but also constantly expanding, making it challenging to monitor every incident or trace all ransom payments made in cryptocurrencies.