Crypto Kidnapping: How Armed Gangs Target the Internet’s High Rollers
In recent years, a disturbing new trend has emerged in the world of cryptocurrency: armed gangs are increasingly kidnapping individuals with significant crypto holdings and demanding ransom in digital currencies. This phenomenon, known as “crypto kidnapping,” represents a modern twist on classic crime, fueled by the soaring value of cryptocurrencies like Bitcoin and privacy coins such as Monero and Zcash.
A Modern Crime Takes Hold
Festo Ivaibi experienced crypto kidnapping firsthand in May 2025. The founder of the cryptocurrency educational platform Mitroplus Labs was taking a quiet drive near the waterside in Kampala, Uganda, when he was encircled by a convoy of vehicles. Armed men, some dressed in military attire, forcefully abducted him, blindfolded him, and threatened him with violence.
“I just didn’t know what to do. I just started praying,” Ivaibi recounted. His captors made clear their motive was not traditional ransom but crypto assets. They demanded a transfer of $500,000, and took two of Ivaibi’s iPhones — devices that gave them access to $120,000 in the stablecoin Tether and $18,000 worth of Mitroplus Lab’s meme coin, Afro Token. Under constant threat — guns pressed to his head or thigh — Ivaibi was forced to unlock his phones via facial recognition multiple times. After over five hours, Ivaibi was abandoned miles from home, left without money, phone, or vehicle.
His ordeal is illustrative of a growing trend worldwide, where criminals target cryptocurrency “whales” or high-profile investors to extort digital currencies through force or coercion.
The Rise of Crypto-Related Abductions
NBC News analyzed media reports and legal filings globally and identified 67 cases of crypto-related kidnappings involving victims or their family members across 44 countries, spanning every continent except Antarctica. Since 2019, such incidents have steadily increased, correlating with the rising price and popularity of Bitcoin and other digital currencies.
In 2024, there were 17 reported crypto kidnappings — the highest in the last decade — and 2025 has already seen a similar number, suggesting the trend may be accelerating.
These kidnappings are part of a broader category known as “wrench attacks,” a term coined from a comic depicting criminals forcibly extracting cryptocurrency passwords by literally hitting victims with a wrench. These attacks include physical assault, home invasions, extortion, blackmail, and even murder targeted at cryptocurrency holders.
Stories from the Field: Real-Life Cases
Rocelo Lopes, a cryptocurrency investor in Brazil, received a chilling call during work: his wife had been kidnapped shortly after dropping off their daughter at school. Held captive by members of the Capital’s First Command gang in SĂŁo Paulo, Lopes was told, “We don’t want f—–g reais, we want it in coins, in cryptocurrencies.” His family’s exposure through local media — which described him as having “a fortune manufacturing bitcoin” — likely made them targets.
Likewise, in New York City, two men with backgrounds in cryptocurrency were arrested in May 2025, charged with kidnapping and torturing a victim inside his home to steal his Bitcoin. The accused, John Woeltz, once dubbed the “Crypto King of Kentucky,” and William Duplessie are alleged to have used brutal tactics including waterboarding and electric shocks.
Muhammad Arsalan, a crypto influencer from Pakistan, reported his kidnapping in December 2024 by a group of eight men who held him captive for ransom — mirroring Ivaibi’s experience in East Africa. These stories underscore the dangerous intersection of violent crime and digital finance.
Why Crypto? The Role of Privacy Coins and Technology
As Bitcoin’s price continues to soar — reaching highs of over $120,000 in mid-2025 — criminals’ incentives to target crypto holders increase. Research from University College London and blockchain analytics firm Chainalysis indicate a direct correlation between Bitcoin’s market value and the frequency of physical attacks.
One notable aspect is perpetrators’ demand for privacy-oriented cryptocurrencies, such as Monero and Zcash, which obscure transaction details and make tracing more difficult. Lopes’ kidnappers explicitly rejected Bitcoin for privacy coins, reportedly advised by someone knowledgeable in crypto evasion techniques.
Furthermore, advancements in facial recognition technology have simplified criminals’ access to victims’ phones, allowing kidnappers to bypass biometric security and gain control of crypto wallets during abductions.
A Global Challenge With No Easy Solution
Crypto kidnappings constitute a challenging problem for law enforcement worldwide. Victims often do not report incidents due to fear, stigma, or distrust. Victim anonymity in the crypto space complicates investigations.
In France, authorities arrested 20 suspects in connection with a series of recent crypto kidnappings, including the high-profile abduction of David Balland, co-founder of the Ledger crypto wallet company.
Experts warn that as cryptocurrencies gain mainstream adoption and valuations climb, such crimes will continue to rise unless stakeholders, law enforcement, and technology providers develop better security protocols, awareness campaigns, and cross-border cooperation.
Protecting Oneself in the Crypto Era
Crypto investors and enthusiasts are urged to exercise extreme caution:
- Limit public exposure: Avoid sharing detailed personal financial information that could attract criminals.
- Use strong security measures: Employ multi-factor authentication, cold wallets, and avoid storing large sums on mobile devices.
- Stay vigilant: Be aware of phishing attempts, suspicious communications, and unexpected threats.
- Work with trusted exchanges and platforms: Those with robust security records can reduce vulnerability.
As the cryptocurrency ecosystem evolves, so does the criminal landscape. Crypto kidnapping exemplifies how digital wealth can translate into real-world peril — a sobering reality for the internet’s modern-day high rollers.