The rise of cryptocurrency has brought with it a new wave of crime that has spilled out from behind computer screens and into the real world. Recent cases in New York, Paris, and Connecticut have highlighted the growing trend of physical violence tied to cryptocurrency-related crimes.
In New York, two American crypto investors, John Woeltz and William Duplessie, have been arrested on kidnapping and assault charges. They allegedly tortured a 28-year-old Italian man for weeks to obtain his Bitcoin password. The allegations have emerged just weeks after 13 people were indicted on federal charges in Washington, D.C., for stealing over $260 million from victims’ cryptocurrency accounts through a combination of hacking, money laundering, and old-fashioned burglary.
The case in Connecticut involved a couple who were carjacked, beaten, and thrown into a van. Authorities allege that the incident was a ransom plot targeting the couple’s son, who is accused of helping steal over $240 million worth of Bitcoin from a single victim. Six men were arrested after police stopped the carjacking.
In France, kidnappings of wealthy cryptocurrency holders and their relatives have become increasingly common. The father of a crypto entrepreneur was kidnapped while walking his dog, and attackers sent videos to his son, including one showing his father’s finger being severed, as they demanded millions of euros in ransom. Police freed the father and arrested several suspects.
The FBI’s 2024 internet crime report revealed nearly 860,000 complaints of suspected internet crime and a record $16.6 billion in reported losses. Cryptocurrency theft victims reported the most losses, with over $6.5 billion stolen. Experts say the crypto crime underworld is likely being fueled by the large amounts of money at stake and weak regulation of cryptocurrency.
Phil Ariss, director of UK public sector relations at TRM Labs, a crypto tracing firm, said that cryptocurrency is 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.
The prevalence of personal information online and people flaunting their crypto wealth on social media have made it easier for criminals to identify potential targets. The anonymity of cryptocurrency transactions has also emboldened criminals, who believe they can get away with crypto theft.
As cryptocurrency becomes more mainstream, law enforcement agencies and experts are warning that the traditional understanding of physical threat and robbery needs to evolve accordingly. The connection between cryptocurrency and violence is becoming increasingly clear, and it’s essential to address the weak regulation and anonymity that are fueling this trend.
