Surging Crypto Markets Fuel Spike in Crimes
Exponential growth in the cryptocurrency market has brought with it an alarming rise in crimes that target traders and investors. From kidnappings to ransomware schemes, 2023 saw a surge in criminal activity driven by the unprecedented market boom.
Kidnapping and Extortion in France
A chilling case which shook France underlined the vulnerability of crypto holders. Masked men had broken into the home of the 56-year-old on New Year’s Eve, tied him and his wife, and then drove him 500 kilometers across the country. The police in Le Mans found the victim trussed up in a petrol-soaked trunk. The kidnappers had used encrypted communication to demand a ransom from his son, a crypto influencer based in Dubai. The kidnappers managed to escape, but investigations are still underway.
Bitcoin’s Record Surge Lures Criminals
Bitcoin’s surge to a record $108,135 in December highlighted the explosive growth of the sector, whose market value swelled to $3.64 trillion. That success has also drawn in criminals looking to tap the wealth of crypto traders. Rich targets are becoming easier marks for kidnappings and extortion.
Pakistani Trader Compelled to Transfer $340,000
In Pakistan, crypto trader Mohammed Arsalan was kidnapped from Karachi and forced to transfer $340,000 using his Binance account. Seven individuals were arrested over the crime, one a serving officer with the Counter-Terrorism Department. A good example of the extent to which individuals will go to get their hands on cryptocurrency wealth.
Crypto-Related Kidnappings Around the World
In Australia, a Saudi royal was kidnapped through a dating app. The victim was ambushed, tied up, and threatened with physical harm unless $40,000 in Bitcoin was transferred. In Canada, WonderFi CEO Dean Skurka was abducted during rush hour in Toronto. He was released only after a $1 million ransom was paid electronically, showing the global reach of such crimes.
Ransomware Payments Surpass $1 Billion
Chainalysis reports that ransomware gangs extorted more than $1.1 billion in crypto payments in 2023. By nature, cryptocurrencies are decentralized and mostly anonymous, making tracking such transactions difficult and leaving the bad guys to operate with impunity.
The increased incidences of crimes involving crypto underscore the need for improved security measures and regulatory oversight for this burgeoning sector.
