In recent months, kidnappings of crypto-asset users have become frequent news, with France standing out as one of the hotspots of this growing wave of crime. These attacks, which often include demands for large ransoms in cryptocurrency, underscore the importance of acting cautiously and avoiding sharing information about our activities in this space.

Many of these kidnappings are known as "wrench attacks,” a term derived from an online comic that satirized how even the most advanced cybersecurity can be breached in simple and brutal ways. In the comic, a victim is beaten with a wrench to force them to reveal their passwords, illustrating how this method combines physical violence with extortion.

Thus, criminals resort to this tactic to kidnap cryptocurrency users, threatening them to force them to hand over the private keys to their digital wallets. In some cases, victims have suffered multiple physical injuries and have been deprived of their liberty for several days. From Paris to Buenos Aires, we examine some of the most recent incidents involving this type of crime.

The case of David Balland, co-founder of Ledger (France)

On January 21, Ledger co-founder David Balland and his wife were kidnapped violently at their home in Méreau, central France. The kidnappers immediately separated them and took them to different locations for detention. 

During their captivity, the kidnappers contacted another of Ledger's co-founders through a WhatsApp account associated with a Southeast Asian phone number. In that contact, they demanded a cryptocurrency ransom, although authorities have not officially confirmed the amount requested. As part of a time-buying strategy, security forces opted to send the captors a bitcoin (BTC). 

David Balland was freed on January 22 during an operation by the GIGN, the elite tactical unit of the French gendarmerie. However, he was injured : the kidnappers amputated one of his fingers and sent a video of the mutilation to Ledger as a form of pressure. His wife was found the next day, January 23, tied up inside a vehicle in Étampes, south of Paris, although unharmed.

The Kentucky “Crypto King” and the SoHo (New York) kidnapping

As CriptoNoticias reported, at the beginning of May a new case shocked the community: an Italian businessman was kidnapped and tortured for more than two weeks in a luxurious SoHo apartment, New York.

The main defendant is John Woeltz, an American investor nicknamed the “Crypto Kin” of Kentucky, who allegedly planned the kidnapping with the aim of obtaining the young European man's Bitcoin passwords. The 28-year-old victim managed to escape after asking for help on the street, visibly injured and showing signs of having been subjected to intense physical and psychological violence.

Following his arrest, Woeltz was charged with several crimes, including kidnapping, assault, and criminal possession of a weapon. , and was held without bail due to his high flight risk. According to prosecutors, the alleged kidnapper had the means to leave the country, including a private jet and a helicopter; it was also reported that a young Italian woman, Beatrice Folchi, was initially detained for her possible involvement in the case, although she was released pending further investigation.

Failed kidnapping attempt on CEO's family (France)

In May, France was once again the scene of arrests. related to crimes targeting cryptocurrency users and their families. Nearly twenty people were arrested between Monday and Tuesday of last week.

One of the incidents involving several of those arrested occurred on May 13 in the 11th arrondissement of Paris, when three hooded men attempted to kidnap the daughter and grandson of Pierre Noizat, CEO of the cryptocurrency exchange platform Paymium. The victim's husband physically intervened, but was beaten and pepper-sprayed.

A neighbor managed to capture the scene from his window, recording moments of chaos and violence: shoving, screaming, and the woman's agonizing struggle to free herself as the attackers tried to drag her away. In a moment of desperation, the victim managed to snatch a pistol which turned out to be a replica airsoft gun from one of the attackers and threw it away.

The cries for help alerted several bystanders, who intervened decisively. One of them grabbed a replica weapon and fired it into the air to intimidate the attackers, while another confronted them with a fire extinguisher. It was this swift citizen reaction that forced the attackers to flee the scene.

Kidnapping of a couple in Buenos Aires (Argentina)

In a recent case in Buenos Aires, a Russian couple was kidnapped in the Palermo neighborhood. According to their statements to police, they both work in businesses related to crypto assets and met with two compatriots at a local bar to discuss business matters. They later agreed to continue the meeting in a rented apartment, where the situation took a dramatic turn.

Once inside the property, the suspects attacked them, confiscated their phones, and immediately transferred approximately USD 43,000 to a digital wallet. They also recorded a video with the victims, which they sent to their families in Russia, demanding an additional USD 100,000 ransom via a QR code, before fleeing the scene.

The situation took another turn when one of the victims managed to shout for help from the balcony, alerting employees of a nearby restaurant, who called 911. Minutes later, the City Police arrived on the scene and rescued the couple. The criminals fled the country, one to the United Arab Emirates and the other to Turkey. Interpol has already issued a red alert for their arrest.

Zimbabwean couple kidnapped and sent to another country (Zimbabwe-South Africa)

On May 13, 2024, a Zimbabwean couple, Professor Shepherd Sikhosana and his wife Sekayi Adelpha Sikhosana, were kidnapped by a criminal gang attempting to seize their crypto assets, then valued at $13.9 million.

Posing as Interpol agents, the kidnappers took the couple to Zimbabwe without going through immigration controls at the Beitbridge border, the main crossing point between South Africa and Zimbabwe. Once in Zimbabwean territory, they held them captive in an apartment in Tropez Flats, in the Eastlea neighborhood of Harare.

During their captivity, their captors threatened the victims with alleged Russian hitmen to prevent them from contacting their families, but the couple managed to send their geographic location, allowing local authorities to intervene and rescue them.

How can we reduce the chances of this happening?

For those who trade cryptocurrencies, discretion is key. Avoiding discussing investments, amounts, or profits, especially on social media or untrustworthy environments, can make a big difference. It's also advisable to use aliases when interacting in communities or making transactions, so as not to link financial activity to your real identity.

In everyday life, it's essential to adopt basic security measures: vary your routines, avoid meeting strangers in private spaces, and avoid sharing your real-time location. For high-net-worth individuals, it may be advisable to invest in personal security services, install apps with panic buttons on your phone allowing you to alert trusted contacts or the police with a single touch or establish emergency protocols with family and friends.

Regarding fund custody, it's best to diversify assets across multiple wallets and opt for cold storage solutions that aren't connected to the internet. It's also helpful to set automatic withdrawal limits and keep seed phrases and private keys in secure locations out of physical reach, even in situations of duress.

With the cases presented in this article, we don't seek to instill fear, but rather to raise awareness. As the value and adoption of cryptoassets grows, so do the associated risks. Therefore, rather than being alarmed, it's essential to act responsibly, take sensible precautions, and remain vigilant. Personal and financial security shouldn't be a secondary concern, but an integral part of our daily lives, especially if we manage large investments.