HARTFORD, Conn. (AP) — A man has reported being tortured for weeks in a townhouse in New York, while another individual in Paris was kidnapped for ransom, with his finger reportedly severed. Additionally, a couple in Connecticut was carjacked, beaten, and forced into a van. All these incidents, according to authorities, are linked to increasing violence surrounding cryptocurrency-related crimes, which have evolved from virtual scams to real-world attacks as the unregulated digital currency gains value.
Cryptocurrency theft has been prevalent for years; however, the recent trend of utilizing physical violence is alarming. John Griffin, a finance professor at the University of Texas in Austin, emphasizes that such brutality is a reflection of the boldness within the crypto scene. He states, “I think this kind of physical violence is a natural manifestation of the emboldened nature of crypto activities.” He continues, suggesting that actions like bank robbery, which are outside social norms, somehow have found acceptance in the cryptocurrency domain.
In the New York incident, two American investors, John Woeltz and William Duplessie, have been arrested on charges of kidnapping and assault after an Italian man disclosed that they tortured him for weeks to extract his Bitcoin password. The attorneys representing Woeltz and Duplessie have yet to provide comments. This incident comes shortly after 13 individuals were indicted on federal charges in Washington, D.C., accused of combining hacking and money laundering with traditional methods of impersonation and burglary to pilfer over $260 million from victims' cryptocurrency accounts.
These suspects are reported to have hacked websites and servers to obtain cryptocurrency databases and identify their targets. Moreover, some are accused of breaking into homes to steal “hardware wallets,” which are crucial for accessing crypto accounts. The overarching investigation traces back to a carjacking in Connecticut where a couple was forced out of their Lamborghini SUV and assaulted, which authorities claim was a ransom plot connected to their son. This son allegedly played a role in stealing more than $240 million worth of Bitcoin from a single victim; he is currently detained under unspecified federal misdemeanor charges.
In France, fears surrounding cryptocurrency-related kidnappings have surged. Recent incidents include the abduction of a crypto entrepreneur's father while walking his dog, during which assailants sent videos demanding millions in ransom, even showcasing the severing of the dad's finger. Authorities later rescued him and arrested several suspects. Additionally, an attempted kidnapping of Pierre Noizat’s daughter, the CEO of the Bitcoin exchange Paymium, was thwarted by a vigilant shopkeeper. Earlier this year, David Balland, co-founder of the crypto-wallet firm Ledger, along with his wife, was also kidnapped for ransom from their home, leading to a police rescue and the arrest of ten individuals.
The FBI reported nearly 860,000 complaints of suspected internet crime in its 2024 internet crime report, marking a record $16.6 billion in reported losses. This reflects a significant 33% increase in losses compared to the previous year. Cryptocurrency theft victims reported losses exceeding $6.5 billion, underscoring the magnitude of this burgeoning crime wave.
Experts attribute the rising violence linked to cryptocurrency crimes to various factors, including the significant monetary stakes and weak regulations surrounding cryptocurrencies. Many transactions occur without identity verification, making crimes easier to perpetrate. The ascent in violent crime is believed to be influenced by the perception among criminals that they can evade capture due to the anonymity of crypto transactions, despite growing online presence and flaunting of wealth among crypto holders on social media. Phil Ariss, the director of UK public sector relations at TRM Labs, argues that cryptocurrency is drawing in criminal groups that have historically relied on violence. As he succinctly puts it, “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.”
