Extreme violence on the rise in crypto-related crimes

Cryptocurrency was supposed to offer digital convenience and security. Of late, it is also fuelling a wave of extreme violence.

The unique characteristic of cryptocurrency is driving a surge of physical attacks against crypto holders, according to a Wall Street Journal report.

Extreme coercion

Users typically safeguard their crypto in the following ways: Keep it with a trusted online exchange (hot wallet) or store it in a hardware device disconnected from the Internet (cold wallet).

As users grow savvier against social engineering and exchanges enact more robust measures against hacking, criminals are resorting to time-honed methods.

• Forcing crypto holders to transfer their assets.
• Holding their loved ones hostage.
• Home invasion for laptops, hardware wallets.

Unlike traditional hostage situations where physical cash is dropped off, cryptocurrency is transferred digitally and laundered at low risk to ringleaders.

And with no physical cash to prepare, time windows are much smaller, making it considerably more challenging for police investigators to react.

In at least two cases, fingers were severed to coerce transfers.

Start with an identity

But how do criminals know who to target?

So far, attacks are mostly tied to prominent names in the crypto world, or those who have unwisely flaunted their wealth online.

Increasingly, others are being targeted.

• Purchase records from a hardware wallet maker.
• Customer details of a cryptocurrency exchange.

These were obtained from hacking incidents where the data was stolen and eventually dumped online.

We know where you live

It's worth noting that even partial records can be pieced together to establish the addresses of victims or their family members.

• A vast amount of personal data has been stolen and dumped online over the last few years.
• By cross-referencing databases and even using paid sources of information, criminals can track down users.

Most cryptocurrencies offer undisputed advantages when it comes to high portability and a degree of pseudonymity.

Unfortunately, the very ease by which it can be transferred globally and without traditional intermediaries make it particularly appealing to certain criminals.

My take? New tech. New crimes. Welcome to the human race.