Crypto traders are increasingly being targeted by kidnappers and extortionists, as highlighted by several recent high-profile cases. As the cryptocurrency market continues to surge, criminals are exploiting the growing sector, seeking to capitalize on the wealth of crypto traders through ransomware, kidnappings, and extortion.
Kidnapping in France
On January 1, 2025, a French police operation led to the rescue of a man found bound and locked in the trunk of a car after his kidnappers demanded a ransom from his son, a Dubai-based crypto influencer. The victim was abducted from his home on New Year’s Eve and transported 500 kilometers across the country before being found doused in gasoline. The investigation is ongoing, with the perpetrators still at large.
The increase in crypto-related crime coincides with Bitcoin’s record high of $108,135 on December 17, 2024, and the broader crypto market’s explosive growth, from $1 trillion to $3.64 trillion in the past year. This surge has drawn the attention of criminals using crypto as a means to demand ransom payments from their victims.
Crypto Kidnapping in Pakistan
On January 3, 2025, Pakistani authorities arrested seven individuals, including a Counter-Terrorism Department officer, for kidnapping a local crypto trader. Mohammed Arsalan was abducted in Karachi on December 25, 2024, and forced to transfer $340,000 in cryptocurrency via his Binance account. Authorities continue their investigation into the case.
Crypto Kidnappings in Australia and Canada
In Australia, a Saudi royal was kidnapped after being lured via a dating app and threatened with having his fingers cut off unless he transferred $40,000 in Bitcoin. Catherine Colivas, one of the kidnappers, was sentenced to a 30-month community corrections order despite pleading guilty to kidnapping and extortion.
In Canada, Dean Skurka, CEO of WonderFi, was kidnapped in Toronto on November 6, 2024, and released after a $1 million ransom was paid electronically. The Toronto police are investigating.
Ransomware gangs extorted more than $1.1 billion in cryptocurrency in 2023, according to Chainalysis data. This surge in ransomware attacks highlights the growing security risks in the cryptocurrency sector, with the anonymity provided by cryptocurrencies making it difficult to track ransom payments or identify perpetrators.
As the cryptocurrency market grows, so do the opportunities for criminals to target individuals involved in the sector. While law enforcement agencies are working to address these crimes, the use of encrypted communications and cryptocurrency complicates efforts to bring criminals to justice. Crypto traders must remain vigilant and adopt stronger security measures to protect their assets and personal safety.
Author’s Opinion
The rapid growth of the cryptocurrency market presents exciting opportunities but also significant risks for those involved. As criminals increasingly target crypto traders through extortion and kidnapping, it is essential for individuals to take proactive steps to secure their assets and personal safety. The industry and law enforcement must collaborate to create safer environments for crypto participants.
