HARTFORD, Connecticut (AP) — A man claims he endured weeks of torture in a New York townhouse. Another individual in Paris was held for ransom and faced the amputation of his fingers. A Connecticut couple suffered injuries after being struck by a van, beaten, and discarded.
Authorities allege these incidents are tied to cryptocurrency-related crimes that have spilled over into the physical world, coinciding with a rise in all worthless currencies.
While crypto theft isn’t a novel concept, the recent trend of employing physical violence is a new development, according to John Griffin, a finance professor at the University of Texas specializing in financial crimes.
“This type of physical violence seems to be a natural outcome of the audacious nature of coding activities,” he stated. “What might be deemed socially unacceptable in other spheres resembles bank heists, yet this appears to be part of the game here.”
Allegations of Luring, Robbery, and Torture
In the New York case, two American crypto investors—John Waltz and William Duplesey—have been arrested on allegations of luring and assault after a 28-year-old Italian man reported that they tortured him for weeks to extract his Bitcoin password. Lawyers representing both individuals declined to provide comments.
Although the allegations still unfold, weeks after 13 individuals in Washington, D.C. faced federal charges, combining computer hacking and money laundering with traditional impersonation and robbery to illicitly obtain over $260 million from victims’ cryptocurrency accounts.
Some suspects are alleged to have hacked websites and servers to steal cryptocurrency databases and identify their targets, while others reportedly invaded victims’ homes to seize “hardware wallets.”
This incident is linked to a prior investigation involving a Connecticut couple who were ejected from a Lamborghini SUV, assaulted, and restrained in the back of a van. Authorities suggest this was a ransom scheme aimed at the couple’s son. Although their son hasn’t been charged, online prison records indicate he is detained on an unspecified “federal misdemeanor crime.” The police intervened in the carjacking and apprehended six men.
Meanwhile, in France, the invitation extended to the wealthy cryptocurrency holders and their families is being scrutinized concerning the ransom plot.
The assailant recently lured a code entrepreneur’s father while he was walking his dog, sending a video to his son. Police eventually released the man and detained several suspects.
Earlier this year, an attempt was made to abduct the daughter of Pierre Noizat, CEO and founder of the Bitcoin exchange platform Paymium, but a shopkeeper wielding a fire extinguisher thwarted the assailants.
In January, the co-founder of David Barlands, a ledger of a French crypto company, and his wife were also held for ransom in their home in central France. They were rescued by law enforcement, leading to the arrest of ten individuals.
Cryptocurrency Crimes Likely Fueled by Large Amounts of Money and Insufficient Regulations
The FBI has recently published its 2024 Internet Crime Report, which tallies a staggering $16.6 billion loss, reflecting nearly 860,000 complaints about internet crimes. This marks a 33% increase in losses compared to 2023.
Collectively, victims of cryptocurrency theft reported the highest losses—over $6.5 billion.
Agents and experts assert that the underbelly of crypto crime, coupled with lax regulations permitting numerous transactions without identity verification, is likely amplified by substantial financial resources.
According to TRM Lab, a crypto tracing company, transactions are notoriously hard to trace and often cloaked in anonymity, which could incite increased violence for various reasons. They argue that criminals believe they can evade capture after committing crypto theft. Additionally, crypto holders make themselves more identifiable as personal information becomes prevalent online and they showcase their crypto wealth on social media.
Phil Ariss, director of UK public sector relations at TRM Labs, commented that cryptocurrencies may be attracting criminal factions historically inclined towards violence.
“Provided there exists a feasible way to launder or liquidate stolen assets, there’s little distinction for criminals whether the target is a high-value watch or a crypto wallet,” Ariss stated. “Cryptocurrencies have achieved mainstream status, thus traditional perspectives on physical threats and theft must adapt accordingly.”
Source: apnews.com