Crypto at gunpoint

Nov 28, 2024 12:00:00 AM

The rising threat of physical attacks on digital asset holders

Mitigating the growing threat of digital asset holder kidnapping instances requires a cohesive and multi-layered approach to security. Criminals are overcoming the technical difficulty of hacking cryptographic blockchain technologies by adopting an approach which endangers the lives of crypto executives and their families.

Key Points

The recent spate of crypto-related kidnappings in France and other European countries are linked to the technical difficulties of hacking highly complex blockchain systems, the ease of accessing so-called hot wallets held on personal mobile devices, and the complications of investigating and prosecuting crypto crime due to the the lack of global oversight and legal protection around crypto exchanges.

Effectively mitigating this risk should assume a three-pronged approach:
Robust intelligence assessments to articulate the risk.
The adoption of technical safeguards to ensure a higher level of protection.
The implementation of a physical security architecture which could include a dedicated close protection team combined with cutting- edge infrastructure adjuncts.

The Threat

Tucked away in the heart of central France, Bourges’ narrow cobbled streets, beautiful town squares, and medieval budlings conjure images of tranquillity, order, and peace. This peace was brutally disturbed earlier this year when David Balland – co-founder of the crypto firm Ledger – and his partner were abducted from their home in the early hours of the morning. Despite being recovered in a raid by French police, the criminals had brutally cut off Mr. Balland’s finger in an attempt to coerce his son to pay a €10m ransom in the form of cryptocurrency. This attack was among the first in a recent epidemic of crypto-related abduction events that culminated in a brazen but ultimately botched attempt in Paris on the 13 May 2025.

While the kidnapping of individuals for a crypto ransom is not new per se, the recent increase in these types of attack are deeply concerning and can be fundamentally explained by three main factors.
Firstly, the systems underpinning cryptographic transactions are complex and extremely difficult to hack – even by someone with a very high level of code literacy.

Secondly, many crypto-holders keep large sums in so-called hot wallets on mobile devices (laptop/phone) that can be accessed quickly under duress. In addition, wallet addresses are pseudonymous, meaning that ownership is not publicly tied to a real-world identity.

Finally, there is no central authority that can freeze or reverse a crypto transaction once it has been executed, and in most countries, the lack of oversight and legal protection around crypto exchanges make investigations and prosecutions of crypto crime extremely difficult.

The Solution

To effectively mitigate the risk, a three-pronged approach should be considered:

Intelligence assessments – understanding an individuals’ exposure and vulnerability is the key first step to countering the crypto- kidnap threat. This could include an analysis of a crypto executive’s online vulnerability from social media and other outlets, the specific locational threat in countries that they inhabit or travel to, or deeper analysis of dark web sources to uncover specific threats to the individual or their family.
Technical safeguards – training and mentoring in the use of cold storage wallets (offline devices), and separating these from the recovery seed, the set-up of multi-signature wallets that require multiple keys to move funds, and the employment of decoy wallets with small amounts for emergencies would all be valuable first steps in countering this growing threat.
Physical security – the power of a dedicated and professional overt close protection team cannot be understated – both as a deterrent to a would-be kidnapper, and as insurance should be worse occur. Furthermore, the installation of state-of-the-art CCTV cameras, reinforcement of residential and business properties, and the implementation of cutting-edge intrusion detection systems would all be highly effective deterrents.