Cryptocurrency is a significant driver of cybercrime, yet a recent report from the Wall Street Journal reveals it is increasingly becoming a target for real-world crime as well. As major cryptocurrency holders transfer their assets to cold wallets, which are not accessible online, they are being targeted by thefts, abductions, and robberies.
The Journal notes that there have been numerous “wrench attacks” reported globally, where victims are coerced through physical assault to relinquish their cryptocurrency assets. Notably, at least five such incidents have occurred in France in recent months.
High-profile robbery attempts, such as the break-in at Twitch streamer Amouranth’s Houston home, have drawn significant attention. In this case, three individuals demanded her cryptocurrency holdings, stealing her laptop before being confronted and chased off. The laptop was eventually recovered, and the attackers did not gain access to her digital currency.
The Journal also suggests that some thefts may involve organized crime rings. A notable case involved Remy St. Felix, a 24-year-old Florida man sentenced to 47 years in prison for leading a crime ring targeting cryptocurrency holders through multiple home invasions, resulting in the theft of $3.5 million in cryptocurrency.
Victims are often selected based on their online profiles, especially those displaying their wealth. Additionally, data breaches at cryptocurrency trading platforms, such as Coinbase and Ledger, have exposed information about potential cryptocurrency holders. The Ledger breach, in particular, revealed the details of over 270,000 individuals.
David Balland, CEO of Ledger, was a victim of a physical attack when he and his wife were kidnapped and held for ransom. During the ordeal, his captors severed one of his fingers and sent photos to Ledger executives to extort payment. The couple was released after multiple payments. This attack, along with others targeting cryptocurrency executives in France, prompted French Interior Minister Bruno Retailleau to meet with the industry to discuss enhanced security measures.
