Offline Threats: Kidnappings of Crypto Entrepreneurs and Security Measures

Incidents of kidnapping targeting crypto entrepreneurs have become more frequent worldwide, with criminals aiming to seize their digital assets. We explore the reasons behind this crime wave and how public figures are safeguarding themselves.

Attacks in France

According to data from Casa co-founder and CTO Jameson Lopp, at least six attacks on crypto entrepreneurs or their relatives have been recorded in France since January. In two instances, criminals inflicted injuries on victims while demanding ransom.

One such case involved the kidnapping of Ledger co-founder David Balland and his wife. In May, a similar tactic was used on the father of an unnamed crypto millionaire, with a demand for $5 million.

In response, on May 16, French Interior Minister Bruno Retailleau announced a “full mobilisation of state bodies” to protect members of the French crypto community. Authorities have deployed special units to guard industry representatives and launched a hotline for emergency calls.

Conference in Cannes

Given the criminal situation in France, organisers of the EthCC conference have heightened security measures ahead of the June event in Cannes, as reported by DLNews.

Among the invitees is Ethereum co-founder Vitalik Buterin. EthCC co-founder Jérôme de Tychey noted that the approach to his security will be “the same as for Tom Cruise,” with overall security levels comparable to those at the Cannes Film Festival.

The organisers of EthCC do not disclose details of their security protocols. It is known that ministers, regulators, and billionaires are expected at the conference. According to Tychey, the infrastructure will “ensure safe movement around the city even for the wealthiest guests.”

Reasons for Increased Violence

Ari Redbord from TRM Labs told DLNews that the rapid increase in the value of digital assets is an obvious reason why crypto investors have become targets for criminal groups.

Additionally, recent changes in European regulation have made France an attractive location for establishing crypto businesses.

“Criminals, as is well known, go where the money is,” noted Redbord.

He suggests that industry participants should avoid publicity on social media and consider hiring security.

Not Only France

Attacks on digital asset owners are not confined to France. On May 23, in New York, crypto investor John Welz and his accomplice were arrested on suspicion of kidnapping and torturing an Italian tourist.

Welz, a former developer of the anonymous cryptocurrency Grin, joined the HyperCash team in 2017 and later oversaw Grin’s security audit. His GitHub profile has not been updated since 2020.

According to the New York Post, the 37-year-old man held the Italian captive for two weeks in a luxury Soho apartment, attempting to access his assets, but the man managed to escape.

Welz was charged with kidnapping, unlawful imprisonment, weapon possession, and assault. His accomplice was charged with complicity. The court has remanded him in custody without bail.

Allbridge.io co-founder Andrey Veliky noted in a ForkLog podcast that he has not encountered crypto-targeted crime in Portugal. However, he mentioned that he has stopped wearing expensive items and accessories for personal safety.

Back on May 15, the Coinbase exchange reported a theft of user data due to the bribery of overseas support staff. The platform’s team refused to pay a $20 million ransom and took countermeasures.