Crypto crime spills over from behind the screen to real-life violence
A man says he was tortured for weeks in a New York townhouse. Another in Paris was held for ransom and his finger cut off. A couple in Connecticut were carjacked, beaten and thrown into a van.
All, authorities allege, were victims tied to cryptocurrency-related crimes that have spilled out from behind computer screens and into the real world as the largely unregulated currency surges in value.
While crypto thefts are not new, the use of physical violence is a far more recent trend, said John Griffin, a finance professor at the University of Texas in Austin who tracks financial crimes.
'I think this kind of physical violence is a natural manifestation of the emboldened nature of crypto activities,' he said. 'Things that might clearly be outside of social norms in other spaces — like robbing a bank — are somehow just part of the game here.'
Kidnapping, burglary and torture allegations
In the New York case, two American crypto investors — John Woeltz and William Duplessie — have been arrested on kidnapping and assault charges in recent days after a 28-year-old Italian man told police they tortured him for weeks to get his Bitcoin password. Attorneys for both men declined to comment.
While the allegations are still emerging, they come just weeks after 13 people were indicted on federal charges in Washington, D.C., accused of combining computer hacking and money laundering with old-fashioned impersonation and burglary to steal more than $260 million from victims' cryptocurrency accounts.
Some are accused of hacking websites and servers to steal cryptocurrency databases and identify targets, but others are alleged to have broken into victims' homes to steal their 'hardware wallets' — devices that provide access to their crypto accounts.
The case stemmed from an investigation that started after a couple in Connecticut last year were forced out of a Lamborghini SUV, assaulted and bound in the back of a van. Authorities allege the incident was a ransom plot targeting the couple's son — who they say helped steal more than $240 million worth of Bitcoin from a single victim. The son has not been charged, but is being detained on an unspecified 'federal misdemeanor offense' charge, according to online jail records. Police stopped the carjacking and arrested six men.
Meanwhile in France, kidnappings of wealthy cryptocurrency holders and their relatives in ransom plots have spooked the industry.
Attackers recently kidnapped the father of a crypto entrepreneur while he was out walking his dog, and sent videos to the son including one showing the dad's finger being severed as they demanded millions of euros in ransom, prosecutors allege. Police freed the father and arrested several suspects.
Earlier this year, men in masks attempted to drag the daughter of Pierre Noizat, the CEO and a founder of the Bitcoin exchange platform Paymium, into a van, but were thwarted by a shopkeeper armed with a fire extinguisher.
And in January, the co-founder of French crypto-wallet firm Ledger, David Balland, and his wife were also kidnapped for ransom from their home in the region of Cher of central France. They also were rescued by police and 10 people were arrested.
Cryptocurrency crime likely fueled by big money, little regulation
The FBI recently released its 2024 internet crime report that tallied nearly 860,000 complaints of suspected internet crime and a record $16.6 billion in reported losses — a 33% increase in losses compared with 2023.
As a group, cryptocurrency theft victims reported the most losses — more than $6.5 billion
The agency and experts say the crypto crime underworld is likely being fueled by the large amounts of money at stake – combined with weak regulation of cryptocurrency that allows many transactions to be made without identity documents.
Violence may be increasing for several reasons including that criminals believe they can get away with crypto theft because transactions are hard to trace and often cloaked by anonymity, according to the crypto tracing firm TRM Labs. And crypto holders are getting easier to identify because of the prevalence of personal information online and people flaunting their crypto wealth on social media, the firm says.
Phil Ariss, TRM Labs' director of UK public sector relations, said crypto also may be attracting criminal groups that have long used violence.
'As long as there's a viable route to launder or liquidate stolen assets, it makes little difference to the offender whether the target is a high-value watch or a crypto wallet,' Ariss said in a statement. 'Cryptocurrency is now firmly in the mainstream, and as a result, our traditional understanding of physical threat and robbery needs to evolve accordingly."
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The Guardian
4 hours ago
- The Guardian
The manosphere seizes on the Diddy trial to undermine female victims: ‘I don't see no crimes committed'
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The Guardian
4 hours ago
- The Guardian
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The Sun
5 hours ago
- The Sun
Putin's secret daughter, 22, ‘working in anti-war art gallery in Paris' after ‘ditching tyrant's name'
VLADIMIR Putin's alleged secret daughter is reportedly working at two Parisian art galleries that showcase anti-war exhibitions. Elizaveta Krivonogikh, 22 – also known as Luiza Rozova and now Elizaveta Rudnova – is said to be rubbing shoulders with Russian dissidents and Ukrainian artists in the French capital. 6 6 6 6 Reports say she is working at L Galerie in Belleville and Espace Albatros in Montreuil, despite being the daughter of a regime responsible for the war they oppose. Both galleries are said to be known for exhibiting anti-war art, according to outlet Meduza, citing a Russian artist. She also reportedly dropped the Putin-linked name and adopted one tied to Oleg Rudnov, a late Vlad ally - in an apparent attempt to mask her ties to the Kremlin tyrant. Her role as gallery manager includes helping organise shows and make videos, and it has seemed to spark fury among exiled Russians and Ukrainians. Artist Nastya Rodionova, who fled Russia in 2022, said she couldn't stay silent. In a Facebook post, she wrote: 'It's important to say that I believe in the presumption of innocence and that children are not responsible for the crimes of their parents. 'But with the war reaching its heights it is inadmissible to allow a person who comes from a family of beneficiaries of [Putin's] regime to come into confrontation with the victims of that regime. 'We need to know who we are working with and decide whether we are ready for that. My personal answer in this case is no.' Dmitry Dolinsky, director of L Association that controls Studio Albatros and L Galerie, defended Rudnova's role. He told The Times: 'She looks like Putin but so do 100,000 other people. I haven't seen a DNA test.' Some insiders back her, calling her a 'cultured person' and 'excellent worker'. But Rodionova hit back, warning that victims of the war shouldn't be forced to share space with anyone tied to the regime – alleged daughter or not. Rudnova's mother, Svetlana Krivonogikh, was sanctioned by the UK in 2023 and linked to Putin's inner circle by independent Russian media. She reportedly owns property worth $100million and was outed as Putin's former mistress by the Proekt investigative team. Elizaveta vanished from Russian social media shortly before the invasion of Ukraine in 2022. She once flaunted a lavish lifestyle on Instagram, posting photos in designer clothes, sipping champagne, and DJing under the name Luiza Rozova. Ukrainian TV later claimed she was living in Paris with a passport under the name Rudnova, allegedly ditching the patronymic Vladimirovna, which would confirm her father's name as Vladimir. 6 6 Born in March 2003, Elizaveta has never publicly confirmed a link to the Russian tyrant. The Kremlin has never confirmed her existence either. But the timing of her birth, her resemblance to Putin, and her mother's major financial rise have fuelled years of speculation. Kremlin critics say she is part of the hidden empire Putin has built for his inner circle and family. Officially, Putin only acknowledges two daughters, Maria and Katerina, from his marriage to Lyudmila Putina, whom he divorced in 2014. But it's long been rumoured he has more children — including two sons with former gymnast Alina Kabaeva. Who are Vladimir Putin's daughters? VLADIMIR Putin is known for keeping his personal and family life very private, but some details about the tyrant's children have surfaced over the years. Maria Vorontsova (née Putin, born April 28, 1985): His eldest, 39, leads government-funded programs personally overseen by Putin, which have received billions from the Kremlin for genetic research. She is the first of two daughters of Putin and his ex-wife, Lyudmila Putina. Maria is said to be an expert in rare genetic diseases in children, and also dwarfism, according to reports. She was married to Dutch businessman Jorrit Faassen. In 2013, the couple were living in a penthouse in Voorschoten, the Netherlands, but the following year, Dutch residents called for her to be expelled following the shooting down of Malaysia Airlines Flight MH17 by pro-Russian rebels in Ukraine. The pair are believed to have moved the Moscow the following year. In March 2022, it was reported that the couple had split after the war in Ukraine crushed Maria's dreams of opening a money-spinning clinic for wealthy foreigners in Russia Katerina Tikhonova (née Putin, born August 31, 1986): Also daughter of Putin and Lyudmila, 38-year-old Katerina is a tech boss whose work supports the Russian government and defence industry. She started as a "rock'n'roll" dancer before moving into the world of artificial intelligence. In 2013, his daughter Katerina married Kirill Shamalov, whose father, Nikolai, is a longtime friend of the president. Nikolai Shamalov is a shareholder in Bank Rossiya, described by US officials as the Russian elite's personal bank. They were married in a secret ceremony at the Igor ski resort just north of St Petersburg. It was reported at the time that the pair rode into the ceremony on a sleigh pulled by three white horses. All the guests invited were sworn to secrecy, and the Kremlin has never confirmed that the wedding took place. "I have a private life in which I do not permit interference," Putin once said. "It must be respected." The couple had corporate holdings worth around $2 billion, according to Reuters, mainly from their large stake in Sibur Holding, a major gas and petrochemical company Kirill bought from another long-time friend of Putin, Gennady Timchenko. Kirill also bought off Timchenko's luxury villa in the seaside resort of Biarritz, southern France, estimated to be worth some $3.7m. In March 2022, the house was taken over by pro-Ukraine activists, in response to Russia's brutal invasion. But Katerina and Kirill divorced in January 2018, with Putin's former son in law rumoured to have been romantically involved with London -based Russian socialite Zhanna Volkova. After the split, Kirill was said to be forced to give up his stocks in Sibur, and he lost almost half his wealth. Their divorce settlement hasn't been disclosed but likely runs into the millions. Despite that, Kirill is still worth an estimated $800 million. Putin was reported to be "quietly grooming" Katerina to be his successor. Vlad is also rumoured to have "hidden" children, though he has never confirmed these reports. Elizaveta Rozova (aka Luiza Rozova): Elizaveta, also known as Luiza Rozova, 21, is the rumoured love child from Putin's alleged affair with a former cleaner. The daughter of Svetlana Krivonogikh, who later became a millionaire, is now a fashion designer and DJ. She often shared details from her lavish life on Instagram, until suddenly taking down the page in the wake of the Ukraine war. Speculation also surrounds his supposed secret family with Alina Kabaeva, a former rhythmic gymnast once known as "the most flexible woman in Russia". Officials have denied that he has kids with Alina, but it is reported that she is in hiding in Switzerland, avoiding any possible sanctions in the wake of the Ukraine war. A petition demanding she is thrown out by the Swiss authorities has garnered 75,000 signatures, demanding that "it's time you reunite Eva Braun with her Führer". Alina retired from gymnastics and took a strange career turn to become a Russian MP. The former athlete - dubbed "Russia's First Mistress" - the Duma, the Russian parliament in 2007, representing her alleged lover's United Russia party but left years later to pick up a lucrative job running a media company, despite having no previous experience. In April, Alina's name and picture was dramatically stripped from the website of the media empire she controlled.
