Any sufficient accumulation of wealth can make someone a target for crime, and cryptocurrency has been a popular tool for scammers thanks to its “anonymous” possibilities. Those two factors appear to be combining in disturbing ways in a wave of kidnappings and ransoms in western Europe. Wealthy crypto investors are now being singled out for kidnappings, according to police.
A report from The Guardian (via PCGamer) says that a man was abducted on the streets of Paris last Thursday, with masked attackers forcing him into a van and then holding him captive until police rescued him on Saturday. Five men were arrested at the house after a raid, but unfortunately the unnamed victim had a finger cut off in a rather cliché ransom attempt. The kidnappers were apparently trying to extort his son—a “crypto-millionaire”—before the scheme fell apart.
Two other crypto-driven kidnappings have occurred in France, one in January and one in December, both times with the victim recovered by police after raids and with some significant distress. Similar stories have occurred in Spain and Belgium, again, with the victims recovered by police and at least some kidnappers arrested.
Cryptocurrency is a unique variable in this pattern of wealthy kidnappings and ransoms. Though cryptocurrencies like Bitcoin are easily trackable via public blockchain ledgers, the holders of the currency themselves can be anonymous, leading to its popularity as a method for fraud, money laundering, and other crime. It’s possible—though by no means easy or straightforward—to move cryptocurrency into conventional wealth and evade law enforcement, especially over international borders.
The cryptocurrency boom seems to be over now that “mining” crypto, which is essentially the process of turning electricity into digital wealth, is no longer as profitable as it once was. But the accumulations of wealth via cryptocurrency are still very much in the spotlight, attracting criminals to take advantage of less-informed investors via old-fashioned “pump-and-dump” schemes with a fresh coat of paint.
Cryptocurrency is also a favorite tool of romance scams, with victims lured into putting real money into fake coins via the promise of investment gains in a system called “pig butchering.” These organized crime setups are doubly disturbing, as they require huge operations that often use kidnapping and forced labor in developing countries.
Author: Michael Crider, Staff Writer, PCWorld
Michael is a 10-year veteran of technology journalism, covering everything from Apple to ZTE. On PCWorld he's the resident keyboard nut, always using a new one for a review and building a new mechanical board or expanding his desktop "battlestation" in his off hours. Michael's previous bylines include Android Police, Digital Trends, Wired, Lifehacker, and How-To Geek, and he's covered events like CES and Mobile World Congress live. Michael lives in Pennsylvania where he's always looking forward to his next kayaking trip.