Crypto kidnappings in Europe are on the rise

In the past, layers of protection involved solid cybersecurity measures to fortify assets at the digital level. Now, however, these gangs are using direct, physical aggression to close in on victims and force them to transfer their funds. Also known as "wrench attacks," this form of crime has seen a sharp rise, particularly in Western Europe.

The Appeal of Crypto Kidnappings to Gangs:

There are clear reasons why this type of crime is rising. As Rohan Rathod, the co-founder of Solistic, points out: "With crypto, once money is sent it is gone. There is no bank to freeze it or reverse it. That is why these criminals shifted from hacking wallets to kidnapping the people who hold them."

Solistic builds the infrastructure for on-chain finance, handling the settlement, tokenisation, and interoperability layers that institutions need to operate.

Yet Mr Rathod notes that the very transparency that makes crypto theft appealing also comes with a catch: "every ransom they demand is permanently recorded."

He says that investigators can use various blockchain-tracing tools from companies such as Chainanalysis and Elliptic to follow the money across the chain to the exchange, where the gangs try to cash out.

Preventive Measures:

In my work in protective intelligence and personal safety, I've encountered the unfortunate victims of such crimes. When discussing what happened, a clear pattern emerges, showing these gangs consistently rely on the same breaching methods.

One of my primary roles is to provide advice to help clients increase their situational awareness and become more mindful of their surroundings. While my goal is to help people avoid becoming victims in the first place, many individuals only initiate preventive measures after they have been through a painful and costly experience, driven by a strong desire to ensure it never happens again.

I was recently a guest on a Podcast called The Martial Podcast, hosted by self-defence author Mark Jacobs. During our discussion, I talked about my physical training experiences and travel adventures, but I also shared the importance of blending in, moving through urban environments without drawing attention, and strategies for handling threats, including insights on dealing with knife violence.

As we look at how crypto crimes are executed, often through multi-layered approaches involving various threat actors, it becomes clear that situational awareness, threat assessment, and preventive measures are especially vital for crypto investors.

Sourcing for Targets:

The first point to emphasise regarding these crimes, which can be terrifying and incredibly traumatic for the victims and their families, is that they are rarely the result of an impulsive, in-the-moment act like a phone snatch or pickpocketing.

Instead, criminals spend significant time gathering and collating data about their targets, often well ahead of the attacks. They scan social media feeds and access black-market data pools, using leaked databases to source potential targets. They then leverage this accumulated data to pry further into the lives of high-profile, wealthy individuals.

One key factor people need to consider is how much of their wealth and valuable items they truly need to display on social media. Individuals who share crypto success stories must be particularly mindful and ensure they have robust preventative measures in place.

It is also worth noting that international criminal syndicates use specialised threat actors for specific, designated roles. Individuals with hacking capabilities focus on building profiles and breaching networks to harvest information or exploit vulnerabilities. Meanwhile, other operatives are deployed to gather physical intelligence from key locations, such as a private residence, a high-profile corporate event, or an exclusive social venue.

In clubs and bars, criminal spotters are constantly on the lookout for anyone spilling information about crypto deals or revealing other indicators of wealth, such as an expensive watch, a high-end car, or a bottle of premium champagne. It is crucial to understand that these spotters blend seamlessly into luxury venues. They often project an appearance of wealth themselves, intentionally striking up conversations with the people they are observing to fish for information about where a target lives, where they work, or which gyms and venues they frequent. In these settings, especially under the influence of alcohol, people can easily become loose-lipped or eager to impress others with their business exploits.

The Domestic Infiltration:

Another common way gangs garner crypto-specific information is by exploiting individuals who work within the private households of wealthy families. This is precisely why it is so important for Family Offices to carry out vetting that goes well beyond basic levels of due diligence. Whether dealing with an external service provider or a full-time member of staff, selection procedures must be thorough. Household staff must also be well briefed on privacy protocols, remaining mindful of what they discuss when those around them may be primed to listen.

This precaution is equally important when businesses or private individuals select meeting locations to discuss sensitive projects. That luxurious hotel bar or high-end restaurant may have eavesdroppers or spotters moving quietly among the guests.

I have focused on the physical preventive measures individuals can take to reduce their chances of becoming targets. That said- cyber security and specific crypto currency measures still provide essential shields to further reduce the risks.

Bob Sawers, Managing Director of Audere Group, a London-based global risk advisory firm, suggests that one of the most effective ways to reduce the risk of being targeted online is to conduct what he calls "reverse due diligence."

He explains: "This involves adopting the mindset and methods of organised criminal groups to identify the information that is publicly available, or has been leaked, and could make you a potential victim."

He adds that such information may include: "seemingly harmless social media posts, publicly accessible company or property records. data exposed in previous breaches, or other details that reveal an individual's wealth, lifestyle, location, or daily routes. Together, these fragments can help organised criminal groups identify potential victims and build a detailed picture of their lives."

The Street Phase:

Once criminal groups have gathered information, there may still be a further observation phase to establish where the target lives or to intercept them when they leave a venue. Having worked on various counter-surveillance assignments over the years, I advise high-profile individuals to not only employ their own basic countermeasures but, if they feel at risk, to utilise an experienced security company to carry out thorough risk assessments.

As Solistic co-founder Rohan Rathod states: "Staying safe is now less about better passwords and more about being harder to find."

That's why I will spend time with clients, helping them to vary their routes and develop their urban disengagement skills.

Previously, I mentioned how organised gangs use different pieces on the board as part of a wrench attack. When it comes time to launch the operation, street-level aggressors are deployed to carry out the physical violence. This could involve forcing the target into a vehicle as they leave a club in Mayfair late at night, or it could involve penetrating their office or domestic environment. This is the brutal reality of the crime. Extreme violence is unleashed, and knives or other weapons are used to guarantee compliance.

France has faced a significant number of wrench attacks over the last couple of years. One high-profile case involved the abduction of David Balland, the co-founder of the prominent crypto hardware firm Ledger.

After being abducted from their home, Mr Balland and his partner were held for a multi-million dollar Bitcoin ransom-a brutal ordeal involving the severing of his finger. French police swiftly intercepted the gang, rescuing the couple and arresting the perpetrators.

Whether it occurs in a late-night street in Mayfair, London, or a Paris suburb, violent crypto crime is a reality across Europe. For anyone operating in this space, it's imperative to maintain constant vigilance, implement strict preventive measures, and remain highly cautious about whom and where they discuss their crypto activities.

About the author:

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Aran Dharmeratnam is an internationally known security consultant involved in risk intelligence and private investigations. He is also the founder of Tri-Tier, which provides high-profile figures and organisations with specialised personal safety and resilience training. His commentary and work have featured across numerous media publications.

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