As the global popularity and value of cryptocurrencies soar, a dark trend has emerged alongside their success—an alarming rise in crypto-related kidnappings. Criminals across the world are increasingly targeting cryptocurrency holders, using violence and intimidation to extort digital assets. These kidnappings, often brutal and meticulously planned, are taking place in various regions including Europe, Asia, and North America, raising concerns about the safety and anonymity of crypto investors.
In France, several incidents have highlighted the growing threat. A particularly harrowing case involved David Balland, the co-founder of the crypto hardware firm Ledger, who was abducted along with his partner. The kidnappers went so far as to sever one of Balland’s fingers in an attempt to coerce him into transferring €10 million worth of crypto. French authorities responded swiftly, rescuing the couple within two days and arresting ten suspects. This incident is not isolated—at least five similar crypto-related abductions have been reported recently in France, sparking national concern and governmental response.
In Pakistan, the involvement of law enforcement officials in such crimes has shocked the public. On December 25, 2024, a crypto trader named Mohammed Arsalan was abducted in Karachi. Disturbingly, one of the kidnappers was a member of the Counter-Terrorism Department. Arsalan was forced to transfer $340,000 from his Binance account before being released. Seven individuals, including the officer, have since been arrested, showcasing the vulnerability of crypto traders in countries where regulation and oversight remain weak.
Canada also witnessed a high-profile case when Dean Skurka, CEO of the crypto exchange WonderFi, was kidnapped in downtown Toronto in November 2024. Skurka was released only after a ransom of $1 million was paid electronically. Similarly, in Hong Kong, a three-year-old boy was kidnapped with a ransom demand of 660,000 USDT—a stablecoin tied to the US dollar. Thankfully, the child was rescued and two individuals were arrested.
The rise in crypto kidnappings can be attributed to several key factors. Chief among them is the anonymity and irreversible nature of crypto transactions. Once a transaction is made, it is almost impossible to reverse, making it an attractive method for criminals seeking ransom. Additionally, cryptocurrencies offer high liquidity, enabling quick conversions into fiat currency or other digital assets. Moreover, the public display of wealth by some crypto holders on social media platforms often makes them easy targets for criminals. The lack of robust regulation in many countries also contributes to the risk, leaving victims with limited legal recourse.
A particularly disturbing trend within these incidents is the use of “wrench attacks,” a term referring to the use of physical violence to force victims into surrendering their private keys or authorizing crypto transfers. Victims have reported being tortured or threatened with harm to their family members. The concept—originally coined in a comic—illustrates how even the most secure digital wallets are vulnerable when physical threats come into play.
