The New Face of Crypto Crime
Cryptocurrency investors are increasingly becoming targets of violent crimes—including kidnappings, beatings, and torture. As the value of Bitcoin and other digital assets continues to soar, criminals have turned to brutal, low-tech tactics to get their hands on virtual fortunes. According to security experts, this disturbing trend is growing worldwide, especially in places like France, the United States, and Southeast Asia.
“These villains are shrewd,” said David McKelvey, a former London police detective, warning that sophisticated gangs often conduct surveillance, install tracking devices, and monitor social media to pick their victims.
When Hackers Can’t Break In, They Break You
In the crypto world, security is often centered on encryption and passwords. But criminals are bypassing those digital defenses through what’s known as a “wrench attack.” The name comes from a comic where a thief skips hacking altogether and simply hits the victim with a wrench until they give up their password.
This isn’t a joke anymore. In recent cases, attackers have used pistols, saws, electric wires, and even mutilation to force victims to unlock their crypto wallets. In one example, the co-founder of crypto firm Ledger had a finger cut off. In another, an Italian investor was bound and tortured in a luxury Manhattan townhouse for 17 days before escaping.
“Really, it was brilliant that he didn’t give up the password,” said former FBI agent Jennifer Coffindaffer. “Right at that point, they could have killed him.”
Examples of Brutality Around the Globe
The violence is not isolated. High-profile cases have made headlines:
- In Houston, Twitch streamer Amouranth was pistol-whipped during a home invasion after publicly posting her Bitcoin wallet worth $20 million.
- In Paris, multiple kidnapping attempts have targeted crypto executives and their families. In one case, the attackers tried to abduct a pregnant woman and her toddler.
- A Connecticut couple was abducted and beaten by men seeking access to their son’s alleged crypto millions.
- In New York, a wealthy Italian trader was held captive in a luxury home and subjected to weeks of torture – electric shocks, saw wounds, and even being urinated on – all to steal his crypto.
These stories are just the tip of the iceberg. “It’s fairly reasonable to assume that the vast majority of attacks are never publicized,” said Jameson Lopp, CTO of crypto custody firm Casa.
Are Law Enforcement Efforts Working?
Law enforcement agencies have scored some wins. French authorities rescued several victims and arrested kidnapping gangs. In New York, the FBI and police arrested suspects in the Manhattan torture case. In Las Vegas, teenagers were charged for stealing millions in crypto assets.
But the success rate is inconsistent. Lopp says many local police departments lack the expertise to investigate crypto crimes, leaving only federal agencies like the FBI able to intervene—and usually only for high-dollar cases.
“Unless we’re talking millions of dollars or more, they’re not going to go after it,” Lopp admitted.
Why Crypto Is a “Low Risk, High Reward” Target
Unlike traditional bank accounts, crypto wallets can be drained instantly and anonymously once a password is given. There’s no customer support hotline to call and no way to reverse a transaction. That makes crypto an attractive target for criminals looking for fast, untraceable money.
Michael Litman of Digital Frontier summed up the risk: “You don’t have a bank to call and say something’s happened.”
French crypto entrepreneurs say government regulations that require their names and addresses to be listed in public databases have only increased their vulnerability.
How to Protect Yourself
With the risk growing, security professionals and crypto platforms are urging investors to adopt new safety measures. Binance, one of the world’s largest exchanges, recommends the following steps:
1. Reduce Visibility
Avoid flaunting your wealth. Never post wallet balances or photos of expensive purchases tied to your crypto success. Consider using pseudonyms for your blockchain activity.
2. Lock Down Social Media
Set profiles to private. Avoid sharing your location in real time. Remove geotags from images. Criminals often collect clues about your routines from social media.
3. Hide Wallet Ownership
Use privacy wallets, avoid reusing addresses, and never connect your real name to blockchain accounts unless necessary.
4. Be Situationally Aware
Vary your routines, especially when traveling. Don’t attend crypto events alone. Consider professional security if you are highly visible in the crypto world.
5. Prepare for the Worst
Set up multi-signature wallets that require approval from more than one person. Create a family emergency plan. Know who to call if something goes wrong.
The Reality of Web3: Digital Wealth, Real-World Danger
As crypto becomes mainstream, digital wealth is becoming as risky as carrying a suitcase of cash. But instead of back-alley muggings, today’s attackers might kidnap your child or torture you for a password. And they’re not just targeting billionaires—anyone who appears to have substantial holdings is fair game.
“Once someone decides you’re worth targeting, it’s already too late to be careful,” warned crypto CEO Michael Englander.
The bottom line: In the age of Bitcoin and Web3, digital riches come with old-fashioned danger. And the price of privacy, security, and anonymity is higher than ever.
