Crypto Millionaire's Father Rescued After Kidnapping, Ransom Demand

French authorities successfully rescued the father of a crypto millionaire in a coordinated raid on Saturday night, following a kidnapping that occurred earlier in the week. The victim, whose identity has not been disclosed, was abducted in broad daylight on Thursday morning in Paris's 14th arrondissement by four masked men who forced him into a delivery van. The victim was held captive for over two days, during which his captors severed one of his fingers, raising fears of further harm if their demands were not met.

The victim was rescued from a rental property in the Essonne region south of Paris. Five suspects, all in their twenties, were arrested during the operation led by specialized cybercrime and intervention units. The kidnappers had demanded a ransom estimated to be between €5 million and €7 million in cryptocurrency. The victim's wife informed investigators that both her husband and their son had previously received threats, hinting at the family’s vulnerability due to their high-profile success in the crypto industry. No ransom was paid before the police intervened.

Ask Aime: What's the outlook for the crypto market after the kidnapping?

The incident marks the third crypto-related kidnapping in France this year, highlighting a growing trend of violent extortions targeting crypto entrepreneurs and their families. In January, Ledger co-founder David Balland was kidnapped and mutilated before police rescued him. The attack on the crypto millionaire's father mirrors the January incident, where the victim had a finger severed, and his kidnappers demanded a €10 million ransom in cryptocurrency. A police raid by France’s elite National Gendarmerie Intervention Group freed Balland, while his partner was later found tied up in the trunk of a car in Essonne, the same region where Saturday’s rescue occurred.

Security experts refer to these types of attacks as "wrench attacks," where physical threats are used to override crypto's digital security measures. These attacks undermine the efficacy of existing digital security norms when confronted with real-world threats. The term originates from a 2012 XKCD comic, according to a comprehensive study on wrench attacks done by researchers at the University of Cambridge and the University College of London. The Paris incident is the 21st attack this year, according to a GitHub repository documenting physical Bitcoin attacks by Jameson Lopp, co-founder and chief technology officer of Bitcoin security firm Casa.

Wrench attacks are roughly correlated with the size of the market and overall adoption of crypto. Security experts urge crypto holders to practice "relaxed awareness" and stay "alert and prepared," among other easy security measures that could be done to prevent wrench attacks. The investigation into Saturday’s kidnapping remains ongoing, with prosecutors determined to uncover the full extent of the criminal network behind the attack. The targeting of crypto figures reflects the growing visibility of digital asset wealth, often flaunted online, which may attract criminal attention. As cryptocurrencies continue to reshape global finance, law enforcement faces new challenges in protecting those who profit from the industry.