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CNBC
4 days ago
- Business
- CNBC
Crypto theft is booming as criminals increasingly turn to physical attacks
The value of cryptocurrencies stolen by criminals surged in the first six months of 2025 after a high-profile hack and a wave of physical attacks targeting crypto holders and their relatives. So far this year, $2.17 billion has been stolen from crypto services — already eclipsing the $1.87 billion of funds stolen from platforms in 2024 — and this is expected to reach $4 billion by the end of 2025, according to a report published Thursday by blockchain analysis firm Chainalysis. Overall, the combined value of digital tokens stolen from both crypto platforms and individuals hit more than $2.8 billion and is already approaching the $3.4 billion in crypto stolen last year. The bulk of the funds stolen from services came from February's cyberattack on Dubai crypto exchange Bybit, which saw North Korea-linked hackers make off with $1.5 billion. It's estimated to be the largest crypto heist in history. However, the rise in stolen crypto assets was also driven by a spike in attacks on individual crypto wallets. Personal wallets accounted for over 23% of total thefts, with attackers increasingly turning to physical violence and coercion to access funds, Chainalysis said. In January, David Balland, a co-founder of crypto wallet firm Ledger, was kidnapped with his wife from their home in central France. Before they were freed, the attackers cut off Balland's finger and sent footage of it to his fellow co-founder Eric Larcheveque demanding ransom money. Separately, in May, the father of a crypto entrepreneur was taken in broad daylight by four men wearing ski masks. The kidnappers demanded a ransom of several million euros and cut off one of the man's fingers. He was freed by police days later. Eric Jardine, cybercrimes research lead at Chainalysis, told CNBC that the rise in crypto-related thefts was primarily being driven by increasing crypto adoption and price appreciation. "Adoption means there are more services and users in the crypto ecosystem, making thefts more common. Price appreciation means that services and individuals in crypto have more USD value to lose, even if the total assets stolen are relatively constant over time," Jardine said via email. Jardine suggested that the uptick in attacks on individual crypto holders could relate to the fact that crypto trading services are beefing up their security. "If services become better at security, malicious actors will potentially move to targeting individual wallet holders and trade off a single large-scale heist in favor of a large number of smaller-scale victimizations," he said. Meanwhile, rising wealth accumulated through holdings of cryptocurrencies like bitcoin has resulted in a rise in crypto influencers flaunting their lifestyle on social media platforms. Jardine stressed it was important not to blame the victims of physical crypto-related attacks, adding that "showy displays of wealth can quite obviously attract the attention of a bad actor when compared to a more modest outward facing lifestyle."
Forbes
24-06-2025
- Forbes
Crypto Wealth Paints A Target. The Security Playbook Is Adapting
BERLIN, GERMANY - JANUARY 29: Symbolic photo for data protection, reflection of Bitcoins, an online ... More payment system, in a computer hard drive on January 29, 2015 in Berlin, Germany. (Photo by Thomas Trutschel/Photothek via Getty Images) The rise of crypto wealth has brought with it an unsettling reality: physical danger. In recent months, a wave of assaults, kidnappings, and extortion attempts has shaken the crypto elite, forcing many to rethink the true cost of self-custody and the limits of their current security setups. In May 2025, the escalation became painfully clear. In Paris, the father of a crypto entrepreneur was abducted while walking his dog. Kidnappers severed his finger and sent ransom videos to his son. He was rescued by French police, who arrested several suspects. Days later, attackers targeted the daughter and grandson of Paymium CEO Pierre Noizat in a failed daylight kidnapping, also in Paris. In New York, an Italian man was captured and tortured for 17 days for his bitcoin fortune before escaping. His captors were arrested shortly after. These are not isolated cases. In January, Ledger co-founder David Balland and his wife were taken hostage at their home in Vierzon, France. In 2024, authorities arrested six men in Connecticut after forcing a couple from their car in a plot allegedly tied to the couple's son, who was accused of stealing over $240 million in bitcoin. The same year, a New York judge sentenced Remy Ra St. Felix to 47 years in prison for leading a violent home invasion ring that specifically targeted crypto holders. Crypto crime has spilled offline. It's no longer just about hacks; it's home invasions, kidnappings, and coercion. Crypto holders must now redefine what security truly means. Private Keys, Public Threats The risk stems not only from crypto's libertarian aura—it's baked into the architecture. Private keys—alphanumeric strings that grant access to crypto wallets—are stored by crypto holders themselves, beyond the reach of banks, courts, or account freezes. A single 24-word seed phrase may control billions of dollars, and once compromised, there's no reversing the damage. This creates a high-stakes vulnerability. As crypto holders become increasingly savvy online, criminals start resorting to physical attacks. Social media only amplifies the risk. Some crypto advocates are prominent by choice; others inadvertently advertise their wealth. Either way, they become visible, traceable, and ultimately targetable. Data leaks only compound the exposure. Last month, Coinbase disclosed a breach affecting under 1% of its active users. The incident involved sensitive data, including full names, home addresses, government-issued IDs, and masked financial details. The breach was reportedly caused by bribed support staff, underscoring that internal threats are often as dangerous as external hacks. Making matters worse, careless regulatory approaches often exacerbate the risk. Government regulations, while well-intentioned, increasingly require centralized collection of wallet addresses and user identities. Rules like the FATF's 'travel rule' and Europe's Transfer of Funds Regulation mandate exchanges to store and transmit identity-linked transaction data, even for withdrawals to self-hosted wallets. The U.S. has proposed similar measures through FinCEN. These policies expose users to the same doxxing vulnerabilities common in traditional database breaches, but without the safety net of TradFi. Once a crypto address is tied to a real-world identity and leaked, it becomes a permanent map of a user's financial history—traceable, targetable, and irreversible. The scale of security spending among crypto executives illustrates just how seriously the risk is being taken. According to Bloomberg, Coinbase has spent $6.2 million on personal security for CEO Brian Armstrong in 2024. This is more than JPMorgan Chase, Goldman Sachs, and Nvidia spent on their top executives combined. Circle allocated $800,000 to protect CEO Jeremy Allaire. Robinhood spent $1.6 million to secure Vlad Tenev. Most crypto users, however, cannot afford personal bodyguards or private intelligence teams. Many turn to custodial solutions—ETFs, centralized exchanges, or third-party vaults. These offer an escape from the burden of personal key management, but at the cost of reintroducing trusted intermediaries—which defies the very idea of trustless, independent money. Real-World Security For Crypto Holders For those committed to self-custody, a new playbook is emerging. Speaking at the Bitcoin Investor event in New York, co-founder of bitcoin security service provider Casa, Jameson Lopp, outlined the core principles of self-custody in a world where physical threats to crypto holders are on the rise. The solution, according to Lopp, is to decentralize control through multi-signature wallets, which require multiple keys to authorize a transaction. Ideally, those keys are distributed across different geographic locations, devices, and operational protocols. Another essential principle is time. In coercive attacks—such as home invasions or kidnappings—attackers typically seek speed. Timelocks—programmed delays that prevent immediate asset transfers—can buy critical minutes or hours. That said, multisig isn't a one-size-fits-all solution. It can involve trusted collaborators or be configured for a single individual with keys spread across different environments. The strength of a self-custody setup lies in diversity across hardware, software, physical conditions, and even resilience to natural disasters. Lopp also stressed that strong privacy is the foundation of both personal and asset security. Public exposure of crypto holdings—whether through social media or leaked data—dramatically increases the likelihood of being targeted. In his view, robust security is multi-layered. Each added layer—whether it's location separation, transaction delay, or operational secrecy—compounds the difficulty for potential attackers. Beyond multisig and timelocks, several other tools can help reduce the risks of real-world threats. Some hardware wallets, like Coldcard and Trezor, support hidden wallets protected by a passphrase, providing plausible deniability under coercion. Others use decoy wallets funded with small amounts, designed to appease attackers without giving up access to the primary stash. Smart contract wallets like Safe (formerly Gnosis Safe) and Argent offer social recovery mechanisms, enabling trusted contacts to help restore access in the event of loss or compromise. For high-risk profiles, emergency vault sweep systems—automated transactions that trigger if the owner fails to check in—can serve as a final layer of protection. Crypto security is no longer just about digital hygiene. What started with passwords and seed phrases must now account for physical risks, operational discipline, and situational awareness. As crypto wealth grows, so does the need for a security mindset that matches its scale and stakes.
Yahoo
24-06-2025
- Business
- Yahoo
Crypto Kidnappings Are on the Rise. Should Investors Be Worried?
Increasing numbers of crypto investors have been victims of kidnapping, wrench attacks, and home invasions. Thieves are using social media to profile potential crypto targets. Don't let criminals change your investment strategy, but do take precautions. 10 stocks we like better than Bitcoin › Crypto kidnappings and so-called wrench attacks have been in the news recently. In one high-profile case, kidnappers in France abducted Ledger co-founder David Balland and his wife and demanded a significant crypto ransom for their release. Closer to home, criminals allegedly held and tortured an Italian entrepreneur for 17 days in a Manhattan apartment. Sadly, it isn't a new phenomenon. Last year, a Florida resident was sentenced to 47 years for a series of crypto-related home invasions that started in 2022. However, these crimes are on the rise. And the Coinbase data breach that revealed the home addresses of over 69,000 customers does not help investors feel safe. According to Bloomberg, there have been 23 attacks on crypto holders this year, up from just six in the same period last year. The name "wrench attacks" comes from a comic strip that suggested complex encryption wouldn't help against criminals who drugged and beat their victims to get their passwords. Bitcoin (CRYPTO: BTC) has soared to record highs this year. Not only are digital currencies becoming more valuable, but they're also more mainstream. TRM Labs Director Phil Ariss says that makes it more attractive to criminals, including violent ones. "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," he said. TRM Labs specializes in analyzing blockchain data to fight fraud and financial crime. One key reason for the rise in attacks on cryptocurrency holders is that the criminals think crypto transactions are both anonymous and irreversible. The transfer takes place instantly. And, unlike a bank transaction, if someone hands over their crypto keys under duress, there's a perception that transfers can't be traced. That's not actually entirely correct. Authorities are getting better at tracking and prosecuting these types of illicit transactions. Sadly, that message hasn't gotten through to the thieves. Another crypto-specific risk is that potential attackers can use peer-to-peer (P2P) transactions to identify crypto holders. The nature of P2P trading means that individuals talk directly to one another, which can expose their personal information. Finally, the thieves target people who post about their crypto gains. From influencers to key players in the industry, bad actors glean information online. Take, for example, the Taihuttu family, who have travelled the world using only Bitcoin since 2017. Recently, strangers told them they'd used YouTube videos to work out where they were staying, so the family stopped posting. Although home jackings aren't unique to crypto, there are elements of digital currencies that can amplify the risks. For some, one of the attractions of crypto is that you can become your own bank. But if you go that route and store your assets in a non-custodial crypto wallet, you are responsible for security. The idea that your investment decisions could make you a target for criminals is certainly unnerving. But don't let dramatic headlines put you off investing in Bitcoin or any other crypto. There are many reasons you might put a small percentage of your portfolio into cryptocurrency, including a desire to hedge against economic uncertainty. However, cryptocurrency doesn't always work in the same way as stocks or money in the bank. Even with increased adoption, it is still a relatively new asset class, and it doesn't have the same investor protections. If you buy crypto, think about how to store it safely. Here are some steps you can take: Buy crypto through an exchange-traded fund (ETF): If you invest in crypto through an ETF, it is the fund -- not you -- that needs to safeguard the assets. The Securities and Exchange Commission (SEC) has already approved spot ETFs for Bitcoin and Ethereum (CRYPTO: ETH) and looks likely to greenlight others shortly. Be careful what you post on social media: Criminals are using social media to build profiles of potential targets. If you've built a profitable crypto portfolio (or from any other investments), try not to share that information online. Make a plan to store your crypto: If you use a non-custodial hardware wallet, consider storing it in a bank safety deposit box. Most crypto wallet companies offer additional security features, so find out what's available. For example, a multisignature wallet requires several keys to authorize transactions. There are also tools that split your seed phrase into several parts and ways to set up fake dummy wallets. Depending on the size of your crypto holdings, you might consider crypto insurance. An increasing number of insurance companies now offer specific packages for Bitcoin holders. Look for policies that specifically protect against wrench attacks. Cryptocurrency investing is still a new frontier. If you buy into a crypto ETF through a brokerage account, the fund takes care of the custody and security. However, if you buy through an exchange, think carefully about how you will store your assets to minimize both cyber and physical risks. Before you buy stock in Bitcoin, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Bitcoin wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $664,089!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $881,731!* Now, it's worth noting Stock Advisor's total average return is 994% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Emma Newbery has positions in Ethereum. The Motley Fool has positions in and recommends Bitcoin and Ethereum. The Motley Fool has a disclosure policy. Crypto Kidnappings Are on the Rise. Should Investors Be Worried? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
11-06-2025
- Yahoo
France makes arrests over cryptocurrency kidnapping
French police have arrested several people suspected of involvement in last month's kidnapping of the father of a wealthy cryptocurrency entrepreneur, a source close to the case said Wednesday. French authorities have been dealing with a string of kidnappings and extorsion attempts targeting the families of high-worth individuals dealing in cryptocurrencies. The most recent suspects, apprehended on Tuesday according to the source, are believed to have been part of an attempt to extort funds from a wealthy man by abducting his father. On May 1, he was taken in Paris's southern 14th arrondissement in broad daylight by four men wearing ski masks who bundled him into a delivery van as passers-by looked on. The kidnappers demanded a ransom of several million euros (dollars) and cut off one of the man's fingers. He was freed days later by a police tactical unit who stormed the house in a Paris suburb where he was being held. There was no word Wednesday on the exact number or the locations of the arrests. The suspects can be held up to 96 hours without charges being brought. Since the start of the year crypto-related kidnappings and abduction attempt haves sparked concern about the security of wealthy crypto tycoons, who have notched up immense fortunes from the booming alternative currency business. One prominent cryptocurrency entrepreneur urged authorities to "stop the Mexicanisation of France" -- a reference to kidnappings by violent organised crime groups. The spate of abductions began in January, when kidnappers seized French crypto boss David Balland and his partner. Balland co-founded the crypto firm Ledger, valued at the time at more than $1 billion. Balland's kidnappers cut off his finger and demanded a hefty ransom. He was freed the next day, and his girlfriend was found tied up in the boot of a car outside Paris. The suspected mastermind of that operation and other similar attacks, 24-year-old Badiss Mohamed Amide Bajjou, was last week arrested in Tangier, Morocco. At least nine suspects are under investigation in that case. Last month, Interior Minister Bruno Retailleau held an emergency meeting with cryptocurrency leaders, with the ministry announcing plans to bolster their security. asl/jh/sjw/cw
eNCA
11-06-2025
- eNCA
France makes arrests over cryptocurrency kidnapping
PARIS - French police have arrested several people suspected of involvement in last month's kidnapping of the father of a wealthy cryptocurrency entrepreneur, a source close to the case said on Wednesday. French authorities have been dealing with a string of kidnappings and extorsion attempts targeting the families of high-worth individuals dealing in cryptocurrencies. The most recent suspects, apprehended on Tuesday, according to the source, are believed to have been part of an attempt to extort funds from a wealthy man by abducting his father. On 1 May, he was taken in Paris's southern 14th arrondissement in broad daylight by four men wearing ski masks who bundled him into a delivery van as passers-by looked on. The kidnappers demanded a ransom of several million euros and cut off one of the man's fingers. He was freed days later by a police tactical unit who stormed the house in a Paris suburb where he was being held. There was no word on Wednesday on the exact number or the locations of the arrests. The suspects can be held up to 96 hours without charges being brought. Since the start of the year crypto-related kidnappings and abduction attempt haves sparked concern about the security of wealthy crypto tycoons, who have notched up immense fortunes from the booming alternative currency business. One prominent cryptocurrency entrepreneur urged authorities to "stop the Mexicanisation of France" -- a reference to kidnappings by violent organised crime groups. The spate of abductions began in January, when kidnappers seized French crypto boss David Balland and his partner. Balland co-founded the crypto firm Ledger, valued at the time at more than $1 billion. Balland's kidnappers cut off his finger and demanded a hefty ransom. He was freed the next day, and his girlfriend was found tied up in the boot of a car outside Paris. The suspected mastermind of that operation and other similar attacks, 24-year-old Badiss Mohamed Amide Bajjou, was last week arrested in Tangier, Morocco. At least nine suspects are under investigation in that case.
