Crypto Kidnapping: How Armed Gangs Are Hunting the Internet’s High Rollers
As cryptocurrencies like Bitcoin continue to soar in value, a disturbing crime trend known as "crypto kidnapping" is on the rise. Increasingly, armed gangs across the globe are targeting wealthy individuals associated with the digital currency world, using kidnapping and extortion to steal millions in crypto assets.
The Rising Threat of Crypto Kidnapping
Festo Ivaibi’s harrowing experience illustrates the growing danger. In May, while on a solitary drive to clear his head near the waterside in Kampala, Uganda, Ivaibi was ambushed by five armed men posing partly in military gear. They surrounded his car, forcibly took him, blindfolded him, and threatened to take him to a so-called “torture house.” The kidnappers demanded a ransom of $500,000 — but crucially, not in cash. They wanted cryptocurrency, knowing that Ivaibi, founder of the crypto educational hub Mitroplus Labs, held significant digital assets.
His captors exploited facial recognition technology to unlock his phones and drain $138,000 in cryptocurrency, including the stablecoin tether and Mitroplus Lab’s own meme coin, afro token. After five hours, they abandoned him miles from home with no belongings. This incident is one of at least 67 crypto kidnapping cases documented by NBC News in 44 countries worldwide, marking a disturbing upward trend since 2019. ### What Are Wrench Attacks?
These crypto kidnappings fall under a broader class of crimes known as "wrench attacks," a term inspired by a comic where thieves joke about using a “$5 wrench” to steal cryptocurrencies physically. Wrench attacks involve direct physical violence or threats aimed at forcing victims to hand over their digital assets.
NBC News uncovered more than 150 alleged wrench attacks globally over the past decade, involving tactics such as home invasions, blackmail, armed robberies, and even torture. In one high-profile U.S. case in May 2025, two men were arrested in New York City for kidnapping and torturing a victim inside his home to access his bitcoin holdings.
Real-World Stories from Crypto Victims
Rocelo Lopes from Brazil also endured a heartbreaking ordeal when his wife was kidnapped in broad daylight after dropping their daughter off at school. The kidnappers, affiliated with the powerful criminal network First Command, demanded Lopes’ cryptocurrencies—not Brazilian reais. Lopes believes his public profile as a bitcoin manufacturer painted a target on his family.
“These people don’t want real money; they want coins, cryptocurrencies,” Lopes said. In fact, the kidnappers repeatedly rejected bitcoin due to its traceability, instead insisting on Zcash and Monero—privacy coins that conceal transaction details, making theft harder to track.
Muhammad Arsalan, a Pakistani crypto influencer, reported a December kidnapping where eight men extorted him by forcing him to transfer tether (USDT) tokens, spotlighting that these crimes are widespread.
The Link Between Crypto Prices and Kidnapping Incidents
Studies and reports from blockchain analytics firms like Chainalysis show a clear correlation between bitcoin’s market price and the frequency of wrench attacks. When bitcoin hit historic highs, peaking over $120,000 in mid-2025, kidnappings and extortions surged correspondingly. Researchers speculate that the number of unreported cases is even higher, hinting at an undercurrent of digital wealth-related violence worldwide.
Organized Crime and Sophistication of Attacks
Research indicates these attacks rarely involve lone wolves. The most violent kidnappings typically require coordinated teams: some conduct the physical abduction and intimidation, while others use sophisticated knowledge of cryptocurrencies to convert or launder stolen funds.
In a 2025 New York kidnapping case, suspects John Woeltz and William Duplessie—both with backgrounds in crypto—were charged with torturing a victim using waterboarding, electrical shocks, and beatings to extract bitcoin access.
Protecting Yourself in the Age of Crypto Crime
Experts warn that the crypto community’s culture of public self-promotion might unintentionally increase risks. Lopes reflected, “Most people in the cryptocurrency space…end up making a very serious mistake: to expose themselves.” Increasing awareness, better security practices, and discretion are now vital for internet high rollers to avoid becoming targets.
Law enforcement agencies worldwide are ramping up efforts to combat this alarming rise in crypto-related physical crimes. However, the decentralized and pseudonymous nature of cryptocurrencies poses unique challenges to tracking and prosecuting such cases.
The expansion of cryptocurrencies has not only transformed finance but also brought new risks, including the alarming rise in violent crimes directed at digital asset holders. As bitcoin and other cryptocurrencies reach unprecedented values, the intersection of cutting-edge technology and traditional crime continues to evolve in ways that demand vigilance and innovative responses from authorities, the crypto community, and society at large.