From Virtual to Brutal: The Physical Dangers of Owning Cryptocurrency

Between 2014 and 2024, the global proliferation of cryptocurrency has led to an increase in physical violence against digital asset holders. Criminal elements have found ways to gain access to large sums in Bitcoin and other cryptocurrencies through physical assaults, kidnappings, and extortion. This trend underscores the fact that security in the world of digital assets must encompass not only the virtual realm but also the physical.

The Onset of Attacks: Early Incidents

One of the earliest known attacks related to Bitcoin occurred in 2014 when Bitcoin developer Hal Finney fell victim to a false police call— a tactic known as “SWATting.” Finney endured severe stress due to the sudden arrival of a SWAT team at his home. This marked the beginning of a series of such crimes targeting cryptocurrency holders.

In 2015, reports began to emerge of Bitcoin ATM robberies in cities like New York and Amsterdam. Thieves used physical force and weapons to break into the machines and steal their contents. Additionally, Bitcoin traders began facing armed attacks during transactions on cryptocurrency exchanges. Criminals preferred to ambush them in public places, exploiting the element of surprise.

New Methods: Kidnappings and Extortion

As cryptocurrencies gained popularity, attackers started employing more sophisticated methods, including kidnappings and brutal forms of extortion. In 2017, the wife of a cryptocurrency exchange owner was kidnapped in Brazil, while in India, kidnappers posing as police officers robbed three traders. In Japan, a woman was attacked for Bitcoin worth 100,000 yen, and in Ukraine, a man was tortured to extract $50,000 worth of cryptocurrency.

In another notorious case, in 2018, blogger Pavel Nyashin, who had boasted of his cryptocurrency wealth, was beaten and robbed of $425,000. Such incidents highlight the importance of discretion when it comes to cryptocurrency investments.

Escalation of Aggression: Violent Attacks

In 2018, attacks became increasingly brazen. Armed home invasions targeting cryptocurrency holders were recorded in the United Kingdom and Ukraine, with perpetrators threatening victims with weapons to force them to transfer access to their crypto wallets. In one instance in England, armed men broke into a trader’s home and family residence, demanding he transfer Bitcoin.

Attacks were no longer confined to individuals; cryptocurrency companies and exchanges also became targets. In Canada, an armed robbery at a cryptocurrency exchange failed the criminals. However, this was far from an isolated incident, as cryptocurrency ATM and exchange office robberies occurred in numerous countries.

Escalation in Asia and the Middle East

Asia and the Middle East became some of the most vulnerable regions for such crimes. In Dubai, multiple attacks were recorded where cryptocurrency holders were kidnapped and tortured to gain access to their digital assets. For instance, criminals would storm traders’ offices or arrange meetings for cryptocurrency purchases that ended in kidnappings and extortion.

Thailand also witnessed several cases of attacks on cryptocurrency holders. In one case, a crypto investor was kidnapped and tortured for several days, with the captors demanding a Bitcoin transfer. Similar attacks were reported in Hong Kong, India, and other countries in the region.

Incidents in Europe and North America

Europe and North America were not spared from the wave of crimes either. In the United Kingdom, armed attacks on cryptocurrency traders and kidnappings for extortion were reported. In Germany and the Netherlands, there were incidents involving attacks on Bitcoin ATM owners, while in Spain, criminals held people hostage to extort large sums in Bitcoin.

In the United States, dozens of armed robberies and kidnappings related to cryptocurrency were registered. For example, in Florida, a crypto trader fell victim to an armed robbery worth $28,000, while in Los Angeles, criminals posing as FBI agents held up a victim and demanded the password to his crypto wallet.

Recent Incidents and New Trends

In recent years, criminal aggression has intensified, with perpetrators increasingly targeting not only cryptocurrency holders but also their families. In Thailand in 2024, a married couple was kidnapped, with the captors demanding cryptocurrency in exchange for their release. In Canada, robbers broke into a family’s home, tied up and beat the victims, demanding large sums in cryptocurrency.

These cases demonstrate that criminals have become more cunning, and attacks on cryptocurrency holders have grown more violent and dangerous.

General Conclusions

Nearly all the attacks involve extortion and physical violence aimed at gaining access to significant sums of cryptocurrency. Criminals often resort to armed home invasions, kidnappings, torture, and threats to force victims to provide access to their crypto wallets or exchanges.

These incidents highlight the vulnerability of digital asset holders to physical threats and the need for both technical and physical security when owning and using cryptocurrency.