Crypto Crime Spills Over from Behind the Screen to Real-Life Violence
As cryptocurrency prices continue to surge in value, authorities are sounding the alarm about a growing trend: physical violence is being used to commit crimes that were once confined to behind computer screens. From alleged kidnappings and torture to carjackings and ransom plots, the use of real-world violence has become increasingly common in cases involving cryptocurrency-related crimes.
One recent case in New York sheds light on this disturbing trend. A 28-year-old Italian man claimed that two American crypto investors, John Woeltz and William Duplessie, tortured him for weeks to extract his Bitcoin password. Both men have since been arrested on kidnapping and assault charges, highlighting the growing connection between cryptocurrency-related crimes and real-life violence.
Experts point to a few factors contributing to this shift. "I think this kind of physical violence is a natural manifestation of the emboldened nature of crypto activities," says John Griffin, a finance professor at the University of Texas in Austin. "Things that might clearly be outside of social norms in other spaces – like robbing a bank – are somehow just part of the game here."
Another notable case came from France, where kidnappings and ransom plots have become increasingly common among wealthy cryptocurrency holders and their relatives. In one recent incident, the father of a crypto entrepreneur was kidnapped while walking his dog and had his finger severed in a disturbing video sent to the family.
Police freed the father and arrested several suspects, but not before other similar incidents rocked the industry. Earlier this year, men in masks attempted to drag the daughter of Pierre Noizat, CEO and founder of the Bitcoin exchange platform Paymium, into a van. In January, David Balland, co-founder of French crypto-wallet firm Ledger, and his wife were also kidnapped for ransom from their home in central France.
The FBI's 2024 internet crime report paints a worrying picture, with nearly 860,000 complaints of suspected internet crime and a record $16.6 billion in reported losses – a 33% increase compared to 2023. Cryptocurrency theft victims accounted for the most losses, exceeding $6.5 billion.
Experts say the crypto crime underworld is likely being fueled by the large amounts of money at stake, combined with weak regulation that allows many transactions to be made without identity documents. "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," says Phil Ariss, director of UK public sector relations at TRM Labs.
"Cryptocurrency is now firmly in the mainstream, and as a result, our traditional understanding of physical threat and robbery needs to evolve accordingly," Ariss adds. The use of anonymity and cloaked transactions makes it easier for criminals to get away with crypto theft, while personal information online and social media make it increasingly easy for authorities to identify victims.
As cryptocurrency prices continue to rise, it's clear that the industry is facing a growing threat from real-world violence. Authorities urge caution and warn of a need for increased regulation to prevent these crimes from spreading further.