Another cryptocurrency operator has been kidnapped! He was forced at gunpoint to transfer $500,000, and two Chinese individuals are suspected to be involved.

Another kidnapping case involving cryptocurrency operators has emerged, with armed groups forcing a transfer.

On May 17, Festo Ivaibi, founder of the cryptocurrency education organization Mitroplus Labs in Uganda, was kidnapped near his home in the capital Kampala. Armed criminals disguised as 'security personnel' from the Uganda People's Defense Force (UPDF) pointed guns at his head, forcing him to unlock his cryptocurrency wallet and transfer approximately $500,000 worth of cryptocurrency to a wallet controlled by the criminals.

According to a report by (Decrypto), a statement from Afro Token, a project under Mitroplus Labs, revealed that the criminals also forced Ivy to sell part of the meme coin Afro Token. The price of the token dropped by about 16.7% after the kidnapping incident, with its market value falling from over $7.3 million in December last year to about $1.6 million currently.

Mitroplus Labs claims that the kidnapping of its founder is a case of organized crime involving informants disguised as cryptocurrency traders, illegal law enforcement personnel, and two Chinese individuals. At least 48 similar attack cases have been discovered in the area.

French cryptocurrency operators were also attacked, with the CEO's family escaping a dangerous situation on the street.

Recently, there has been a spate of attacks on cryptocurrency operators. French media (France24) previously reported that on May 13, the daughter and grandchild of the CEO of the French cryptocurrency exchange Paymium were attacked in broad daylight by three masked men in the 11th district of Paris, who attempted to force them into a van for kidnapping.

The surveillance camera footage showed that the woman fought back fiercely, even grabbing the criminal's gun and throwing it away. In the end, a shop owner stepped forward, wielding a fire extinguisher to drive the criminal away, forcing the attacker to abandon the action and flee the scene.

In January this year, David Balland, the co-founder of the French cold wallet brand Ledger, and his partner were also kidnapped. The criminals even cut off Balland's finger and demanded a 'large ransom in cryptocurrency.'

In May 2024, there was also a case where criminals kidnapped a man's father, attempting to force his millionaire son in cryptocurrency to pay a ransom. In both cases, the victims suffered the traumatic experience of having their fingers cut off.

Further reading:
The CEO's family was attacked on the road! Shocking footage revealed: Was it the fire extinguisher that resolved the crisis?

Ledger co-founder rescued after kidnapping! French police arrest the suspect and recover the full ransom in cryptocurrency.

Cryptocurrency operators frequently encounter 'wrench attacks.' How can they protect themselves?

Cases of cryptocurrency operators being kidnapped and forced under duress to hand over private keys or authorize cryptocurrency transactions are commonly referred to as 'wrench attacks.'

Michael Pearl, Vice President of Strategy at blockchain security company CyVers, suggests that cryptocurrency users can adopt security measures such as multi-factor authentication, monitor unusual transaction patterns, or access from new devices to trigger alerts or temporarily freeze assets to protect their property.

Harry Halpin, CEO of the decentralized VPN service Nym, believes that the increase in wrench attacks is due to the widening wealth gap and the skyrocketing value of cryptocurrencies, while governments demand more transparency and identity data, which can easily leak to criminals trying to target cryptocurrency holders.

Even so, the financial flow of kidnappers can still be traced, helping law enforcement solve cases.

Jonathan Levin, CEO of cryptocurrency analysis firm Chainalysis, previously stated that law enforcement has been very successful in holding some criminals accountable in these kidnapping cases, and ransoms paid in cryptocurrency are indeed traceable.

'Another cryptocurrency operator has been kidnapped! He was forced at gunpoint to transfer $500,000, and two Chinese individuals are suspected to be involved.' This article was first published in 'Crypto City.'