Wrench Attacks: The Dark Side of Cryptocurrency's Mainstream Surge
The rise of cryptocurrency has brought about a new era of financial freedom, but it has also spawned a wave of violent crimes that are leaving holders subject to brutal attacks, kidnappings, and ransom demands.
Law enforcement agencies in the United States, France, and Canada have reported a surge in cases of "wrench attacks," where perpetrators use physical violence or intimidation to get their hands on cryptocurrency wallets or assets. The term "wrench attack" was popularized by an online comic that humorously illustrated how easily high-tech security can be breached with a simple object.
According to Phil Ariss, a crypto tracing expert at TRM Labs, the increasing value of cryptocurrency has led to a rise in violent crimes. Criminals believe they can get away with theft and laundering because transactions are difficult to track, and anonymity is often cloaked by the use of cryptocurrencies.
A Canadian CEO Held for Ransom, Montreal Police Investigate Homicide
In Canada, a Toronto-based cryptocurrency company's CEO was briefly held for ransom late last year. The case highlights the growing threat of cryptocurrency-related crimes in the country.
In Montreal, police are investigating the murder of a 24-year-old cryptocurrency influencer. The investigation is ongoing, and details about the motive or possible suspects remain scarce.
New York Case: Kidnapping and Assault Charges for Two Crypto Investors
In New York, two American crypto investors, John Woeltz and William Duplessie, have been arrested on kidnapping and assault charges. The case involves a 28-year-old Italian man who was tortured to get his Bitcoin password.
According to the allegations, Duplessie and Woeltz lured the victim to an eight-bedroom townhouse in Manhattan's Soho district. Over the course of 17 days, the man reported being bound, shocked with electrical wires, pistol-whipped, cut on the leg with a saw, and forced to smoke from a crack pipe.
The victim eventually agreed to give the men access to his password after he was dangled from the top floor of the townhouse. He managed to escape and flag down a traffic agent on the street outside. A search of the townhouse uncovered a trove of evidence, including cocaine, a saw, chicken wire, body armor, night vision goggles, ammunition, and Polaroid photos of the victim with a gun pointed to his head and a crack pipe in his mouth.
Both Duplessie and Woeltz appear to be entrepreneurs focused on cryptocurrency. Their online profiles suggest they are involved in various blockchain-based companies and investments.
Ransom Plot Foiled in France, Security Measures Introduced
In France, kidnappings of wealthy cryptocurrency holders and their relatives have become a growing concern. Attackers recently kidnapped the father of a crypto entrepreneur while he was out walking his dog.
Prosecutors allege that the attackers sent videos to the son, including one showing the father's finger being severed as they demanded millions of euros in ransom. The father was eventually freed by police, and several suspects were arrested.
Avoiding Violence: Enhanced Security Measures for Crypto Entrepreneurs
French Interior Minister Bruno Retailleau has announced plans to boost security measures for cryptocurrency entrepreneurs and their families. These include offers of security briefings by elite police units, priority access to emergency services, and police checks on home security.
A New Era of Financial Crime?
The rise of cryptocurrency has brought about a new era of financial crime. As the industry continues to grow, it's essential for law enforcement agencies and regulatory bodies to stay ahead of these emerging threats.