A global wave of crypto-related kidnappings sparks alarming security concerns
In recent months, a disturbing wave of kidnappings targeting cryptocurrency company executives and their families has drawn international attention, reports a Kazinform News Agency correspondent. These incidents, often violent, are part of a broader trend in which physical coercion is used to extort digital assets from victims. Perpetrators, exploiting personal data leaked in hacking attacks, are increasingly bypassing cyber defenses and turning to real-world aggression.
Among the most high-profile cases was the attempted abduction in Paris of the daughter of a senior executive at the Paymium crypto exchange. The woman and her two-year-old child narrowly escaped harm thanks to the intervention of neighbors and her husband, who was injured during the attack.
Other incidents have proven more severe. Earlier this year, David Balland, co-founder of French crypto wallet manufacturer Ledger, was abducted along with another individual. The assailants demanded €10 million in cryptocurrency, sending a video of Balland having a finger cut off as proof of their intentions. Authorities managed to locate Balland only after part of the ransom had been paid. Ledger ultimately transferred €3 million in total but was able to recover most of the sum by freezing the crypto assets involved.
“These crimes are not just personal tragedies—they are a signal of systemic failure in public safety,” said Eric Larcheveque, another Ledger co-founder. “How many entrepreneurs, how many talented individuals are now seriously considering leaving a country that no longer protects its citizens?”
France alone has seen at least five such incidents in recent months, while dozens more have been reported globally over the past year. Industry insiders warn that the true number may be even higher, as many victims refuse to speak publicly due to safety concerns.
From cybersecurity to physical threats
With blockchain technology enabling instant and irreversible transfers, and cyber defenses growing more sophisticated, criminals increasingly opt for physical attacks to gain access to digital wallets. Experts suggest that the shift from hacking to “wrench attacks” — a term used to describe using physical force to pressure victims — reflects a dangerous evolution in criminal tactics.
“Crypto is digital, but the people behind it live in the physical world,” said Jameson Lopp, a cryptocurrency security specialist who maintains a public database of such assaults. “In 2024, we tracked 32 verified physical incidents. So far this year, we’re already at 23.”
Security firms report growing demand for armed bodyguards, armored vehicles, and home safety audits from cryptocurrency executives. Families are advised to limit social media presence and erase leaked personal data to reduce visibility to potential attackers.
The situation escalated further when details emerged about a security breach at a major crypto platform Coinbase. Criminals bribed third-party customer service agents, gaining access to user data including names, addresses, ID photos, and account balances. Several clients later fell victim to phishing attacks and even physical extortion. One victim, declining to be named, said, “I can’t risk speaking publicly—someone might come to my door.”
Industry response and national security measures
In response to mounting fears, several crypto exchanges and companies have ramped up their protective measures. Coinbase reportedly allocated $6.2 million in 2024 to protect its CEO, significantly more than what JPMorgan, Goldman Sachs, and Nvidia spent on executive security combined. Circle spent $800,000 on CEO Jeremy Allaire’s protection, and Robinhood allocated $1.6 million for Vlad Tenev.
France’s Interior Ministry recently announced new initiatives to support the crypto industry amid security threats. Emergency contact lines with law enforcement are being established specifically for crypto professionals, while elite police units will provide security briefings and site assessments.
The issue has become particularly pressing in Paris, where multiple abductions and attempted kidnappings occurred within a few months. The father of an unnamed crypto millionaire was seized in the capital, and in early May, the Paymium incident further shook the community.
“Security is no longer an optional expense—it is the cost of doing business,” noted a representative of the EthCC crypto conference, which this year significantly bolstered its protective measures. “In previous years, we worked only with local police. Now we’ve added national special forces and private firms.”
As awareness grows, more people are realizing that success in the crypto world comes with real, physical risks. Industry leaders are urging governments to recognize the national security implications of these crimes and provide more robust protective frameworks for digital finance innovators and their families.
Earlier, it was reported that Bitcoin surged to a record high of $122,000 in mid-July, boosting the entire crypto market amid strong ETF inflows, short squeezes, and growing optimism surrounding U.S. cryptocurrency legislation.