Crypto Crime Spills Over from Behind the Screen to Real-Life Violence
A growing number of cryptocurrency-related crimes have spilled over into real-life violence, leaving victims with physical and emotional scars. From torture and ransom plots to carjackings and kidnappings, the line between online crime and offline violence is becoming increasingly blurred.
The Rise of Cryptocurrency-Related Crimes
According to John Griffin, a finance professor at the University of Texas in Austin, cryptocurrency-related crimes have surged in recent years. "I think this kind of physical violence is a natural manifestation of the emboldened nature of crypto activities," he said. "Things that might clearly be outside of social norms in other spaces — like robbing a bank — are somehow just part of the game here."
The New York Case: A Tale of Torture and Kidnapping
In recent days, two American crypto investors, John Woeltz and William Duplessie, have been arrested on kidnapping and assault charges in connection with a 28-year-old Italian man's allegations that he was tortured for weeks to obtain his Bitcoin password.
Attorneys for both men declined to comment on the case. Meanwhile, authorities are investigating another kidnapping plot involving a couple in Connecticut who were carjacked, beaten, and thrown into a van after their son allegedly helped steal over $240 million worth of Bitcoin from a single victim.
The Paris Kidnapping: A Ransom Plot Gone Wrong
In France, kidnappings of wealthy cryptocurrency holders and their relatives have become increasingly common. Attackers recently kidnapped the father of a crypto entrepreneur while he was out walking his dog, sending videos to the son showing the dad's finger being severed as they demanded millions of euros in ransom.
The FBI's 2024 Internet Crime Report
The FBI recently released its 2024 internet crime report, which tallied nearly 860,000 complaints of suspected internet crime and a record $16.6 billion in reported losses — a 33% increase in losses compared to 2023. As a group, cryptocurrency theft victims reported the most losses — more than $6.5 billion.
The Crypto Crime Underworld: A Complex Web of Violence
Cryptocurrency crime is likely being fueled by big money and little regulation. The large amounts of money at stake combined with weak regulation of cryptocurrency allow many transactions to be made without identity documents, making it easier for criminals to operate.
Expert Insights: The Role of Anonymity in Crypto Crime
Crypto tracing firm TRM Labs' director of UK public sector relations, Phil Ariss, said that crypto also may be attracting criminal groups that have long used violence. "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," he said in a statement.
The Need for Evolution in Cryptocurrency Crime
"Cryptocurrency is now firmly in the mainstream, and as a result, our traditional understanding of physical threat and robbery needs to evolve accordingly," Ariss added. The use of violence in cryptocurrency-related crimes highlights the need for law enforcement agencies to adapt to this new landscape.