Violence connected to cryptocurrency crimes is increasingly spilling over from the digital realm into real life, with reports of kidnappings, assaults, and extortion emerging worldwide.
In New York, two American crypto investors, John Woeltz and William Duplessie, were arrested for kidnapping and assault after a 28-year-old Italian victim reported weeks of torture aimed at obtaining his Bitcoin passwords. Their lawyers declined to comment.
Similar violent incidents have been reported elsewhere. In Connecticut, a couple was forcibly removed from their Lamborghini SUV, beaten, and confined in a van in what authorities describe as a ransom attempt targeting the couple’s son, who is accused of involvement in stealing over $240 million in Bitcoin. Though detained, the son has not yet been formally charged in this case.
France has seen alarming kidnappings targeting wealthy crypto holders. Prosecutors said a cryptocurrency entrepreneur’s father was abducted during a dog walk; his captors severed a finger to demand a multi-million euro ransom but later released him after police intervention. Other notable cases include the near-abduction of the daughter of Bitcoin exchange Paymium’s CEO and the kidnapping of Ledger’s co-founder and his wife, who were later rescued.
John Griffin, finance professor at the University of Texas at Austin, notes that while crypto theft is not new, the use of physical violence is a recent and troubling trend. “Physical violence reflects the brazen nature of some cryptocurrency criminals,” he said. “Actions that would normally be unacceptable, like bank robbery, have become part of the game.”
The FBI’s 2024 cybercrime report showed nearly 860,000 complaints and a record $16.6 billion in losses, a 33% increase over 2023. Cryptocurrency theft made up the largest share, with losses exceeding $6.5 billion.
Experts link the rise in violent crypto crimes to massive illicit profits, weak regulation, and the anonymity of many crypto transactions. TRM Labs, a crypto tracking company, points to criminals’ belief that crypto theft often goes unpunished due to tracing difficulties and the public exposure of crypto wealth on social media.
Phil Ariss, TRM Labs’ UK Public Sector Relations Director, warns that mainstream adoption of crypto attracts violent criminal groups. “If stolen assets can be laundered or cashed out, it doesn’t matter to criminals whether it’s a luxury watch or a crypto wallet,” he said. “As cryptocurrency becomes ingrained in society, our understanding of physical threats and robbery must evolve.”
This rise in crypto-related violence underscores the urgent need for stronger regulations, improved law enforcement responses, and increased public awareness to tackle the growing risks of digital asset crimes in the physical world.
Related Topics:
Trump Family’s Expanding Cryptocurrency Empire Raises Ethical Concerns
