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CBC
2 days ago
- Business
- CBC
'Wrench attacks' subject some cryptocurrency holders to violence, kidnapping
Social Sharing Police in two cases in the United States, and one in France, allege that brutal assaults were 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. The alleged attempted robberies fall into a category often described as a "wrench attack." It's a name popularized by an online comic that mocked how easily high-tech security can be undone by hitting someone with a wrench until they give up passwords. Wrench attacks are on the rise thanks in part to cryptocurrency's move into mainstream finance, Phil Ariss of the crypto tracing firm TRM Labs said in a recent blog post. 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, TRM says. "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. "Cryptocurrency is now firmly in the mainstream, and as a result, our traditional understanding of physical threat and robbery needs to evolve accordingly." In Canada, a Toronto cryptocurrency company CEO was briefly held for ransom late last year, while Montreal police are investigating last year's homicide of a 24-year-old cryptocurrency influencer. In both cases, police have been tight-lipped regarding the details or possible motives surrounding the crimes. Here's a look at some of the recent, high-profile international cases: Manhattan townhouse captivity alleged 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 to get his Bitcoin password. Attorneys for both men declined to comment. Authorities said Duplessie and Woeltz lured the victim on May 6 to an eight-bedroom townhouse in the Soho district of Manhattan, one of the city's most expensive neighbourhoods. Over the next 17 days, the man told police he was bound by the wrists, shocked with electrical wires, pistol-whipped, cut on the leg with a saw and forced to smoke from a crack pipe. At one point, he said, he was dangled from the home's top flight of stairs. Believing he would soon be killed, the victim said he agreed Friday morning to give the men access to the password. But as the men went to retrieve his computer, the victim was able to escape from the home and flag down a traffic agent on the street outside. A search of the townhouse turned up a trove of evidence, prosecutors said, including cocaine, a saw, chicken wire, body armour, night vision goggles, ammunition and Polaroid photos of the victim with a gun pointed to his head and a crack pipe in his mouth. The victim was hospitalized with injuries to his wrists consistent with being bound, cuts to his face and other injuries, authorities said. Both Duplessie and Woeltz appear to be entrepreneurs focused on cryptocurrency. In online profiles, Duplessie is listed as the co-founder and head of sourcing at Pangea Blockchain Fund and an investor in other blockchain-based companies. An email seeking comment was sent to Pangea. Woeltz has described himself in interviews as a blockchain investor who spent time in Silicon Valley before becoming involved in Kentucky's burgeoning crypto-mining industry. Lamborghini hijacking in Connecticut While the allegations are still emerging, earlier this year 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 US 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. WATCH | Canadian police struggle with challenges in crypto cases: Police struggling to keep pace with cryptocurrency fraudsters 4 months ago Duration 3:11 The case stemmed from an investigation that started after a couple in Danbury, Ct., last year were forced out of a Lamborghini SUV, assaulted and bound in the back of a van. An off-duty FBI agent just happened to be in the area at the time and helped police track the movements of the suspects' vehicle, according to a longform feature on the case from New York Times Magazine. Authorities allege the incident was a ransom plot targeting the couple's son — who they say helped steal more than $240 million US worth of Bitcoin from a single victim. The son has not been charged, but is being detained on an unspecified "federal misdemeanour offence" charge, according to online jail records. Police stopped the carjacking and arrested six men. Spate of incidents in France 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. Noizat told a French television network that his son-in-law needed stitches as a result of the attack, and he implored authorities to do more to prevent targeted attacks. 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 Cher region of central France. They also were rescued by police and 10 people were arrested. French Interior Minister Bruno Retailleau recently said security will be beefed up for crypto entrepreneurs and their families, with offers of security briefings by elite police units, priority access to emergency services and police checks of their home security.
The Star
3 days ago
- The Star
Why 'wrench attacks' on wealthy crypto holders are on the rise
New York police officers arrest John Woeltz on May 23, 2025, in New York, who was charged with kidnapping, assaulting and holding a man against his will for several weeks in an upscale Manhattan town house. — AP The headline-grabbing tale of an Italian man who said he was kidnapped and tortured for weeks inside an upscale Manhattan townhouse by captors seeking his bitcoin highlights a dark corner of the cryptocurrency world: the threat of violence by thieves seeking digital assets. The alleged attempted robbery is known as a "wrench attack.' It's a name popularised by an online comic that mocked how easily high-tech security can be undone by hitting someone with a wrench until they give up passwords. Wrench attacks are on the rise thanks in part to cryptocurrency's move into mainstream finance, Phil Ariss of the crypto tracing firm TRM Labs said in a recent blog post. "Criminal groups already comfortable with using violence to achieve their goals were always likely to migrate to crypto,' Ariss said. Some of the crypto's key characteristics help explain why wealthy individuals who hold a lot of digital assets can be ripe targets for such attacks. The draw Cryptocurrencies like bitcoin offer traders full control of their funds without the need for a bank or permission from a government to buy, sell or hold it. The trade-off is that if funds are lost or stolen, there can be no way to get them back. Self-reliance is a key ethos of crypto. Securing and controlling one's private keys, which are like passwords used to access one's crypto holdings, is viewed as sacrosanct among many in the crypto community. A popular motto is "not your keys, not your coins.' Transactions on the blockchain, the technology that powers cryptocurrencies, are permanent. And unlike cash, jewelry, gold or other items of value, thieves don't need to carry around stolen crypto. With a few clicks, huge amounts of wealth can be transferred from one address to another. In the case in New York, where two people have been charged, a lot of details have yet to come out, including the value of the bitcoin the victim possessed. Crypto thefts Stealing cryptocurrency is almost as old as cryptocurrency itself, but it's usually done by hacking. North Korean state hackers alone are believed to have stolen billions of dollars' worth of crypto in recent years. In response to the threat of hacking, holders of a large amount of crypto often try and keep their private keys off the internet and stored in what are called "cold wallets.' Used properly, such wallets can defeat even the most sophisticated and determined hackers. But they can't defeat thieves who force a victim to give up their password to access their wallets and move money. The case in New York is the latest in a string of high-profile wrench attacks. Several have taken place in France, where thieves cut off a crypto executive's finger. Mitigation Experts suggest several ways to mitigate the threats of wrench attacks, including using wallets that require multiple approvals before any transactions. Perhaps the most common way crypto-wealthy individuals try to prevent wrench attacks is by trying to stay anonymous. Using nicknames and cartoon avatars in social media accounts is common in the crypto community, even among top executives at popular companies. – AP
The Hindu
3 days ago
- The Hindu
Why 'wrench attacks' on wealthy crypto holders are on the rise
The headline-grabbing tale of an Italian man who said he was kidnapped and tortured for weeks inside an upscale Manhattan townhouse by captors seeking his bitcoin highlights a dark corner of the cryptocurrency world: the threat of violence by thieves seeking digital assets. The alleged attempted robbery is known as a 'wrench attack.' It's a name popularised by an online comic that mocked how easily high-tech security can be undone by hitting someone with a wrench until they give up passwords. Wrench attacks are on the rise thanks in part to cryptocurrency's move into mainstream finance, Phil Ariss of the crypto tracing firm TRM Labs said in a recent blog post. 'Criminal groups already comfortable with using violence to achieve their goals were always likely to migrate to crypto,' Ariss said. Some of the crypto's key characteristics help explain why wealthy individuals who hold a lot of digital assets can be ripe targets for such attacks. Cryptocurrencies like bitcoin offer traders full control of their funds without the need for a bank or permission from a government to buy, sell or hold it. The trade-off is that if funds are lost or stolen, there can be no way to get them back. Self-reliance is a key ethos of crypto. Securing and controlling one's private keys, which are like passwords used to access one's crypto holdings, is viewed as sacrosanct among many in the crypto community. A popular motto is 'not your keys, not your coins.' Transactions on the blockchain, the technology that powers cryptocurrencies, are permanent. And unlike cash, jewelry, gold or other items of value, thieves don't need to carry around stolen crypto. With a few clicks, huge amounts of wealth can be transferred from one address to another. In the case in New York, where two people have been charged, a lot of details have yet to come out, including the value of the bitcoin the victim possessed. Stealing cryptocurrency is almost as old as cryptocurrency itself, but it's usually done by hacking. North Korean state hackers alone are believed to have stolen billions of dollars' worth of crypto in recent years. In response to the threat of hacking, holders of a large amount of crypto often try and keep their private keys off the internet and stored in what are called 'cold wallets.' Used properly, such wallets can defeat even the most sophisticated and determined hackers. But they can't defeat thieves who force a victim to give up their password to access their wallets and move money. The case in New York is the latest in a string of high-profile wrench attacks. Several have taken place in France, where thieves cut off a crypto executive's finger. Experts suggest several ways to mitigate the threats of wrench attacks, including using wallets that require multiple approvals before any transactions. Perhaps the most common way crypto-wealthy individuals try to prevent wrench attacks is by trying to stay anonymous. Using nicknames and cartoon avatars in social media accounts is common in the crypto community, even among top executives at popular companies.
Global News
3 days ago
- Global News
‘Wrench attacks' against crypto holders are on the rise. What to know
The headline-grabbing tale of an Italian man who said he was kidnapped and tortured for weeks inside an upscale Manhattan townhouse by captors seeking his bitcoin highlights a dark corner of the cryptocurrency world: the threat of violence by thieves seeking digital assets. The alleged attempted robbery is known as a 'wrench attack.' It's a name popularized by an online comic that mocked how easily high-tech security can be undone by hitting someone with a wrench until they give up passwords. Wrench attacks are on the rise thanks in part to cryptocurrency's move into mainstream finance, Phil Ariss of the crypto tracing firm TRM Labs said in a recent blog post. 'Criminal groups already comfortable with using violence to achieve their goals were always likely to migrate to crypto,' Ariss said. Some of crypto's key characteristics help explain why wealthy individuals who hold a lot of digital assets can be ripe targets for such attacks. Story continues below advertisement The draw Cryptocurrencies like bitcoin offer traders full control of their funds without the need for a bank or permission from a government to buy, sell or hold it. The trade-off is that if funds are lost or stolen, there can be no way to get them back. Get daily National news Get the day's top news, political, economic, and current affairs headlines, delivered to your inbox once a day. Sign up for daily National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy Self-reliance is a key ethos of crypto. Securing and controlling one's private keys, which are like passwords used to access one's crypto holdings, is viewed as sacrosanct among many in the crypto community. A popular motto is 'not your keys, not your coins.' 3:00 Consumer Matters: Tips to avoid crypto currency investment fraud Transactions on the blockchain, the technology that powers cryptocurrencies, are permanent. And unlike cash, jewelry, gold or other items of value, thieves don't need to carry around stolen crypto. With a few clicks, huge amounts of wealth can be transferred from one address to another. Story continues below advertisement In the case in New York, where two people have been charged, a lot of details have yet to come out, including the value of the bitcoin the victim possessed. Crypto thefts Stealing cryptocurrency is almost as old as cryptocurrency itself, but it's usually done by hacking. North Korean state hackers alone are believed to have stolen billions of dollars' worth of crypto in recent years. In response to the threat of hacking, holders of a large amount of crypto often try and keep their private keys off the internet and stored in what are called 'cold wallets.' Used properly, such wallets can defeat even the most sophisticated and determined hackers. But they can't defeat thieves who force a victim to give up their password to access their wallets and move money. Story continues below advertisement The case in New York is the latest in a string of high-profile wrench attacks. Several have taken place in France, where thieves cut off a crypto executive's finger. Mitigation Experts suggest several ways to mitigate the threats of wrench attacks, including using wallets that require multiple approvals before any transactions. Perhaps the most common way crypto-wealthy individuals try to prevent wrench attacks is by trying to stay anonymous. Using nicknames and cartoon avatars in social media accounts is common in the crypto community, even among top executives at popular companies.
Time of India
3 days ago
- Time of India
Cryptocurrency thefts are rising: How to safeguard Bitcoin, Crypto assets?
Cryptocurrency thefts have hogged the headline as some of the crypto's key characteristics reveal reasons why wealthy individuals who hold a lot of digital assets can be ripe targets for such attacks. Experts have advised ways to tackle the threats and safeguard the assets, as per a report. The headline-grabbing tale of an Italian man who said he was kidnapped and tortured for weeks inside an upscale Manhattan townhouse by captors seeking his bitcoin highlights a dark corner of the cryptocurrency world: the threat of violence by thieves seeking digital assets. The alleged attempted robbery is known as a "wrench attack". It's a name popularized by an online comic that mocked how easily high-tech security can be undone by hitting someone with a wrench until they give up passwords, AP reported. Wrench attacks are on the rise thanks in part to cryptocurrency's move into mainstream finance, Phil Ariss of the crypto tracing firm TRM Labs said in a recent blog post. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Linda Kozlowski, 67, Shows Off Her Perfect Figure In A New Photo Today's NYC Undo Cryptocurrency Thefts Stealing cryptocurrency is almost as old as cryptocurrency itself, but it's usually done by hacking. North Korean state hackers alone are believed to have stolen billions of dollars' worth of crypto in recent years. Live Events In response to the threat of hacking, holders of a large amount of crypto often try and keep their private keys off the internet and stored in what are called 'cold wallets.' Used properly, such wallets can defeat even the most sophisticated and determined hackers. But they can't defeat thieves who force a victim to give up their password to access their wallets and move money. The case in New York is the latest in a string of high-profile wrench attacks. Several have taken place in France, where thieves cut off a crypto executive's finger. Ways to Tackle Cryptocurrency Thefts Experts suggest several ways to mitigate the threats of wrench attacks, including using wallets that require multiple approvals before any transactions. Perhaps the most common way crypto-wealthy individuals try to prevent wrench attacks is by trying to stay anonymous. Using nicknames and cartoon avatars in social media accounts is common in the crypto community, even among top executives at popular companies. FAQs Q1. What is world's most popular cryptocurrency? A1. World's most popular cryptocurrency is Bitcoin. Q2. What is 'wrench attack'? A2. The headline-grabbing tale of an Italian man who said he was kidnapped and tortured for weeks inside an upscale Manhattan townhouse by captors seeking his bitcoin highlights a dark corner of the cryptocurrency world: the threat of violence by thieves seeking digital assets. The alleged attempted robbery is known as a "wrench attack".
