Bitcoin Family Tightens Security Amid Crypto Kidnapping Surge

The ‘Bitcoin Family’ has implemented drastic security measures in response to a surge in crypto-related kidnappings. The family, known for selling all their belongings in 2017 to invest in Bitcoin and now traveling the world, has taken extreme precautions. This includes storing parts of their Bitcoin wallet seed phrase on fireproof metal plates distributed across four continents.

The family consists of Didi Taihuttu, his wife Romaine, and their three daughters—Joli, Juna, and Jessa. They have gained attention for living a bankless life supported by Bitcoin. Taihuttu emphasized the family's new security approach, stating that even if someone held him at gunpoint, they could not access more than what is on his phone wallet, which is not a significant amount.

The Bitcoin Family is not alone in tightening security measures. Over the past few months, there has been a dramatic increase in crypto-related kidnapping and extortion cases. Earlier this year, David Balland, co-founder of a hardware wallet company, and his partner were kidnapped and tortured, with Balland reportedly losing a finger. Additionally, the attempted kidnapping of the daughter of a prominent crypto exchange CEO in broad daylight went viral, causing fear among individuals with substantial crypto holdings.

Following these incidents, the French government vowed to increase security measures for crypto executives. This included priority access to the police emergency line, home visits, and safety guidance from law enforcement. Days later, an Italian tourist escaped from kidnappers in a Manhattan apartment after being held hostage for 17 days and tortured. The perpetrators, attempting to extort the victim’s Bitcoin wallet password, were arrested.

Amid the spate of kidnappings, crypto investors like the Bitcoin Family have started tightening security measures. Several have resorted to private security firms to hire bodyguards or armored trucks to ensure safety. Insurance companies have also started offering kidnap and ransom (K&R) policies tailored for crypto holders.

Taihuttu mentioned that the family has reassessed their security measures due to the rising cases. He noted that his kids read the news, especially the story in France, where the daughter of a CEO was almost kidnapped on the street. The family has taken several steps to ensure safety, including ditching hardware wallets, which were once considered the safest way to store crypto. Taihuttu explained that they are now completely hardware wallet-less, switching to a hybrid system where the seed phrase is stored via partly digital and partly analogue methods.

As part of the enhanced security measures, the family has split a 24-word Bitcoin seed phrase into four sets of six words. Each set is stored on a different continent, requiring Taihuttu to make at least one international trip to access the wallet. He can, however, add funds to the wallet without any hassles. Taihuttu explained that even if someone finds 18 of the 24 words, they cannot do anything. While some parts of the seed phrase are stored through blockchain encryption platforms, others are etched on fireproof steel plates and hidden. Taihuttu has also added a separate layer of personal encryption to throw off would-be attackers by switching out certain words of the seed phrase.

The family uses this method to store about 65% of its crypto holdings, considering it safer than using a centralized vault. Taihuttu is concerned about being able to access his funds in case the company goes bankrupt. The family has also moved away from centralized exchanges, executing around 80% of its trades via decentralized platforms. For the family’s crypto stored in hot wallets for trading, Taihuttu uses multi-signature wallets to ensure enhanced safety. He added that they treat the majority of their cold wallet savings as a pension fund that the family will only access once the BTC price reaches $1 million.

The Taihuttu family has a large social media presence, with tens of thousands of followers across platforms. However, the family has been stepping away from the spotlight amid the growing threats. Taihuttu noted that they got a little bit famous in a niche market, but that niche is becoming a really big market now. He believes that the number of crypto robberies is going to keep increasing, which is why the family is making tough choices, from curtailing video shoots to avoiding certain regions. While the family is currently in Thailand, they have stopped posting regular travel updates and shooting videos at home. Taihuttu said that while creating content is his passion, the concern for his daughters’ safety is forcing him to stay away from the camera.