‘Little proof’ that EU laws helped criminals in crypto kidnappings (19459000)
In Paris, the father of a wealthy cryptocurrency businessman was abducted earlier this month while walking his dog. The attackers forced him into the van wearing balaclavas. They then severed one of his fingers, and sent a video to his son demanding millions of euros as ransom.
This incident is part of a growing list in France of violent crimes linked to crypto wealth. A prominent entrepreneur, his wife, and a man who was doused with petrol were among the victims. Also, a child was targeted in a failed abduction attempt.
As fears spread in France’s crypto-community, some industry figures accuse the landmark EU digital asset regulations for exposing holders to more risk. Their main concern is the transparency requirements that could make it easier for crypto owners to be tracked down. Other insiders, however, argue that the EU rules are a convenient scapegoat. Stanislas BARTHELEMI, president of French crypto lobbying group ADAN told the New York Times this week
that the rules could have inadvertently put holders at risk. He said that criminals could monitor blockchain activity in order to identify wealthy targets by creating a traceable, digital footprint.
Alexandre Stachchenko echoed this concern. He is the director of strategy at French cryptocurrency exchange Paymium. He said that while the industry “wants anonymity and discretion,” I law “tells[us]it’s criminal.”
“Strategic deflection”
Marit Rodevand is the CEO and co-founder of Strise, a Norwegian anti-money-laundering firm. She said that there was little evidence of a link between the EU’s rules, and crypto kidnappings. “While it’s easy for crypto advocates to postulate that increased physical attacks against those operating in the space is a result of regulations, this is reductive and a strategy deflection from legitimate security concerns,” said she.
According to Rodevand it is equally likely that information on potential targets were accessed via hacks, social networking exposure, or publicity. Many crypto entrepreneurs areinfluential influencers.
Christopher Whitehouse is a crypto expert at the London-based RPC law firm. He also denied any connection. Whitehouse said that those who held large amounts of cryptocurrency were “obvious” targets.
Whitehouse told TNW, “The recent spike in crypto-motivated child kidnappings is alarming, but not surprising.”
Whitehouse noted that cryptocurrencies are attractive to ransom demand because of their features. They can be moved instantly, are difficult for sophisticated criminals to track, and lack the protections of traditional accounts. Serial numbers can be used to track traditional currency.
Exploiting vulnerability
While brutal, the recent violence in France is not new. According to data compiled and analyzed by crypto security advocate Jameson Lopp over 200 physical attacks have been reported against Bitcoin and cryptocurrency owners since 2014. Some of these attacks have been fatal Matt Green, head for blockchain technology disputes at London’s Lawrence Stephens law firm, says that criminals are exploiting the weakest link of the crypto chain, people. He told TNW that the only thing stopping criminals from gaining access to crypto is human error. Some high-wealth cryptocurrency holders have beefed their personal security to protect themselves. This includes hiring bodyguardsGreen suggests that multisignature wallets are another layer of security. These wallets require multiple users to perform certain actions, such as transferring funds.
Green said that just as some shops display signs stating that no cash is stored on premises, crypto holders should make it clear to their customers that only one person can access funds.
