Criminals are shifting towards stealing digital assets through real-world attack methods.
Cryptocurrency has long been the focus of many cyber crimes, but according to a new report from the Wall Street Journal, this type of asset is increasingly becoming a target in the real world. As 'whales' and large holders of cryptocurrency move assets to cold wallets — which cannot be accessed online — they become targets for theft, robbery, and even kidnapping.
The newspaper reported that in just the past year, governments in many countries have recorded dozens of 'wrench attacks' — that is, attacks using crude tools to inflict pain in order to force victims to reveal wallet information or transfer cryptocurrency. In France alone, at least 5 incidents have been reported in recent months.
One of the most notable incidents occurred in March when the famous streamer Amouranth was attacked by three individuals who broke into her apartment in Houston. This group demanded she hand over cryptocurrency assets, took her laptop, but was quickly chased off by her husband. The laptop was recovered, and no digital assets were stolen. Ultimately, the police identified three teenagers as the culprits.
However, according to WSJ, many signs indicate that organized crime gangs are behind some of these incidents. Last year, a 24-year-old man named Remy St. Felix in Florida was sentenced to 47 years in prison for leading a gang that carried out a series of home invasions targeting cryptocurrency holders. This gang used violence to control victims, demanding they transfer assets, and has stolen a total of $3.5 million.
The way attackers choose their targets is also very diverse, but most start from social media profiles. People who often boast about their wealth or are active in the cryptocurrency community tend to be targeted. Data leaks from exchanges like Coinbase (NASDAQ:COIN) and Ledger have also contributed to exposing personal information of hundreds of thousands of individuals. Notably, the leak from Ledger publicly disclosed the names, emails, and addresses of over 270,000 customers.
Even the CEO of Ledger — Mr. David Balland — was a victim in a serious kidnapping case. He and his wife were kidnapped and held for nearly two days, while the kidnappers demanded ransom in cryptocurrency. They cut off one of Mr. Balland's fingers and sent photos to company leaders to pressure them to transfer money. The couple was only released after multiple payments were made.
The case of Mr. Balland, along with a series of other attacks in France targeting leaders in the cryptocurrency sector, forced Interior Minister Bruno Retailleau to hold a meeting with businesses to discuss strengthening security measures in this field.
