'Wrench attacks' subject some cryptocurrency holders to violence, kidnapping
Social Sharing
Police in two cases in the United States, and one in France, allege that brutal assaults were tied to cryptocurrency-related crimes that have spilled out from behind computer screens and into the real world as the largely unregulated currency surges in value.
The alleged attempted robberies fall into a category often described as a "wrench attack." It's a name popularized by an online comic that mocked how easily high-tech security can be undone by hitting someone with a wrench until they give up passwords.
Wrench attacks are on the rise thanks in part to cryptocurrency's move into mainstream finance, Phil Ariss of the crypto tracing firm TRM Labs said in a recent blog post.
Violence may be increasing for several reasons including that criminals believe they can get away with crypto theft because transactions are hard to trace and often cloaked by anonymity, TRM says.
"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," Ariss said. "Cryptocurrency is now firmly in the mainstream, and as a result, our traditional understanding of physical threat and robbery needs to evolve accordingly."
In Canada, a Toronto cryptocurrency company CEO was briefly held for ransom late last year, while Montreal police are investigating last year's homicide of a 24-year-old cryptocurrency influencer. In both cases, police have been tight-lipped regarding the details or possible motives surrounding the crimes.
Here's a look at some of the recent, high-profile international cases:
Manhattan townhouse captivity alleged
In the New York case, two American crypto investors — John Woeltz and William Duplessie — have been arrested on kidnapping and assault charges in recent days after a 28-year-old Italian man told police they tortured him to get his Bitcoin password. Attorneys for both men declined to comment.
Authorities said Duplessie and Woeltz lured the victim on May 6 to an eight-bedroom townhouse in the Soho district of Manhattan, one of the city's most expensive neighbourhoods.
Over the next 17 days, the man told police he was bound by the wrists, shocked with electrical wires, pistol-whipped, cut on the leg with a saw and forced to smoke from a crack pipe. At one point, he said, he was dangled from the home's top flight of stairs.
Believing he would soon be killed, the victim said he agreed Friday morning to give the men access to the password.
But as the men went to retrieve his computer, the victim was able to escape from the home and flag down a traffic agent on the street outside.
A search of the townhouse turned up a trove of evidence, prosecutors said, including cocaine, a saw, chicken wire, body armour, night vision goggles, ammunition and Polaroid photos of the victim with a gun pointed to his head and a crack pipe in his mouth.
The victim was hospitalized with injuries to his wrists consistent with being bound, cuts to his face and other injuries, authorities said.
Both Duplessie and Woeltz appear to be entrepreneurs focused on cryptocurrency. In online profiles, Duplessie is listed as the co-founder and head of sourcing at Pangea Blockchain Fund and an investor in other blockchain-based companies. An email seeking comment was sent to Pangea.
Woeltz has described himself in interviews as a blockchain investor who spent time in Silicon Valley before becoming involved in Kentucky's burgeoning crypto-mining industry.
Lamborghini hijacking in Connecticut
While the allegations are still emerging, earlier this year 13 people were indicted on federal charges in Washington, D.C., accused of combining computer hacking and money laundering with old-fashioned impersonation and burglary to steal more than $260 million US from victims' cryptocurrency accounts.
Some are accused of hacking websites and servers to steal cryptocurrency databases and identify targets, but others are alleged to have broken into victims' homes to steal their "hardware wallets" — devices that provide access to their crypto accounts.
WATCH | Canadian police struggle with challenges in crypto cases:
Police struggling to keep pace with cryptocurrency fraudsters
4 months ago
Duration 3:11
The case stemmed from an investigation that started after a couple in Danbury, Ct., last year were forced out of a Lamborghini SUV, assaulted and bound in the back of a van. An off-duty FBI agent just happened to be in the area at the time and helped police track the movements of the suspects' vehicle, according to a longform feature on the case from New York Times Magazine.
Authorities allege the incident was a ransom plot targeting the couple's son — who they say helped steal more than $240 million US worth of Bitcoin from a single victim.
The son has not been charged, but is being detained on an unspecified "federal misdemeanour offence" charge, according to online jail records. Police stopped the carjacking and arrested six men.
Spate of incidents in France
Meanwhile in France, kidnappings of wealthy cryptocurrency holders and their relatives in ransom plots have spooked the industry.
Attackers recently kidnapped the father of a crypto entrepreneur while he was out walking his dog, and sent videos to the son including one showing the dad's finger being severed as they demanded millions of euros in ransom, prosecutors allege. Police freed the father and arrested several suspects.
Earlier this year, men in masks attempted to drag the daughter of Pierre Noizat, the CEO and a founder of the bitcoin exchange platform Paymium, into a van, but were thwarted by a shopkeeper armed with a fire extinguisher. Noizat told a French television network that his son-in-law needed stitches as a result of the attack, and he implored authorities to do more to prevent targeted attacks.
And in January, the co-founder of French crypto-wallet firm Ledger, David Balland, and his wife were also kidnapped for ransom from their home in the Cher region of central France. They also were rescued by police and 10 people were arrested.
French Interior Minister Bruno Retailleau recently said security will be beefed up for crypto entrepreneurs and their families, with offers of security briefings by elite police units, priority access to emergency services and police checks of their home security.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CTV News
31 minutes ago
- CTV News
Calls for better road safety on Hwy. 138
Following a deadly crash on Highway 138 last spring, residents in North Stormont are demanding change. CTV's Dylan Dyson reports.
Globe and Mail
an hour ago
- Globe and Mail
President Trump's Plan to End Taxes on Overtime Pay Could Become Reality Sooner Than You Think
President Trump made a lot of attention-grabbing promises during his campaign for a second term, and in his five months since retaking office, he's met with varying degrees of success in enacting them. Ending taxes on Social Security benefits, for example, appears no nearer than it was on Trump's first day in office. But he's made considerable headway with some of his other agenda items, including ending taxes on overtime pay. We could see this enacted yet this year, but there are still some important details to be ironed out. The "One, Big, Beautiful Bill" could end taxes on overtime as soon as this year House Republicans recently drafted the "One, Big, Beautiful Bill" that incorporates several of President Trump's key campaign promises, like an end to taxes on tips and overtime pay. It would create an above-the-line deduction for these items, so you wouldn't owe any income taxes on them. The House version of the bill clarifies that the tax deduction for overtime pay would apply only to overtime compensation that is paid to an individual in excess of the regular rate they receive for their work. This deduction wouldn't be available to highly compensated employees (HCEs) and those without a work-eligible Social Security number. The bill narrowly passed the House, and lawmakers initially hoped it would make it to the president's desk by July 4, 2025. But the Senate is determined to make its mark on the legislation as well, and at least some senators, like Ron Johnson (R-WI), feel the July 4 deadline isn't realistic. The Senate is already making changes The Senate's version of the "One, Big, Beautiful Bill" isn't finalized yet, but we've already had a peek at some of the changes it hopes to make. While the general idea of no taxes on overtime pay remains in the latest version of the bill, the Senate has added one important restriction. The tax deduction for overtime pay would be limited to $12,500 per person or $25,000 for married couples filing a joint return. While this should be adequate for most people, it may be disappointing if you earn a lot of money from overtime. The House version of the bill didn't have any restrictions on the overtime tax deduction. There are also income phaseouts that reduce the deduction by $100 for every $1,000 your modified adjusted gross income (MAGI) exceeds $150,000 for a single adult or $300,000 for a married couple. Individuals with MAGIs of $275,000 or more and married couples with MAGIs of $550,000 or more wouldn't be eligible to claim the deduction. It's not a done deal yet Senate Republicans can only afford to lose three Republican votes if they want the bill to pass, and right now, there are several who are voicing concerns about the bill in its current state. This means that it likely won't be passed in the next couple of weeks at least. There isn't a vote scheduled currently. If it does pass, the overtime tax deduction will take effect for the 2025 tax year, according to the current bill. However, it would only remain in place through the 2028 tax year. After that, it would be up to lawmakers to decide whether to continue the deduction or not. The $23,760 Social Security bonus most retirees completely overlook If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income. One easy trick could pay you as much as $23,760 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Join Stock Advisor to learn more about these strategies.
CTV News
an hour ago
- CTV News
Alberta RCMP make arrest in 2019 homicide case
An undated photo of Twyla Evans, whose death was ruled a homicide after she disappeared from Wetaskiwin, Alta., in September 2019. (Source: Alberta RCMP) A man has been charged with first-degree murder in the death of a woman who went missing from Wetaskiwin six years ago. Twyla Evans, 39, was reported missing in September 2019 in Wetaskiwin where she was last seen alive. Her death was ruled a homicide, even though her body was never found. Mounties say 'recent developments' led to the arrest and charging of Stan Cross, 49, on Friday. He is due in court on Tuesday in Wetaskiwin. 'Our Alberta RCMP Historical Homicide Unit is a team of dedicated and meticulous investigators who are working for those who can no longer speak for themselves,' said Insp. Breanne Brown in a statement. 'The Alberta RCMP does not stop investigating in these circumstances and our team continues to work to bring Twyla home. I can assure you that our investigators pour their hearts into these investigations and are committed to providing answers to victim's families regardless of how much time has passed.'
