KARACHI— Cryptocurrency’s promise of borderless, decentralised wealth has drawn millions into its orbit, but for many of its rising stars, affluence now comes with a chilling price: life-threatening offline attacks. As kidnappings and violent heists surge across the globe, traders who once thrived in the anonymity of online markets are scrambling to secure their physical lives.
For Mohammed Arsalan, crypto was the only path out of poverty. Growing up working class in Karachi, Pakistan, he turned a pandemic-era setback into an opportunity, learning Bitcoin trading and building a social media following of over 160,000. His success story, however, took a harrowing turn on Christmas Day 2024 when men posing as police abducted him, drove him into the night, and forced him at gunpoint to hand over access to his digital wallets.
“I made this money from very, very hard work,” Arsalan said. “After this case, I will not trust anyone.” Within minutes, his Binance account was emptied, wiping out five years of savings.
Global Wave of Crypto-Related Kidnappings
Arsalan’s ordeal is part of a disturbing global trend. Over the past 18 months, at least 231 physical attacks on cryptocurrency holders have been reported, with nearly a third occurring since the start of 2024. These crimes range from brutal kidnappings to home invasions and torture, targeting both wealthy investors and unsuspecting retirees.
In France alone, a gang cut off an entrepreneur’s finger, doused another victim’s father in gasoline, and tried to abduct a CEO’s daughter in Paris, according to French police. An Italian investor in New York was tortured for weeks with a chainsaw and taser, while in Houston, an influencer was pistol-whipped in front of her children as gunmen demanded millions in crypto.
“These attacks show how the illusion of online invisibility can collapse in the real world,” said Jethro Pijlman of Infinite Risks International, a global security firm seeing a rise in requests from crypto investors seeking protection.
Public Ledgers, Public Targets
At the heart of this growing danger lies blockchain technology itself. While praised for transparency, blockchains publicly display wallet balances and transaction histories, exposing who controls substantial sums. Criminals now use illicit software to link addresses to real identities or bribe insiders at exchanges for personal data, as seen last month when Coinbase support staff in India leaked data on 70,000 users.
“Everybody’s a bit on edge,” said Louis d’Origny, founder of FTXCreditor. “In five minutes, you can find someone’s address. You’d be very tempted to show up at a house with a machete.”
Crypto’s permissionless nature compounds the risk: transactions occur instantly, without bank approvals or oversight, making it easy for kidnappers to move stolen funds across decentralised exchanges that don’t require identification, effectively hiding assets from law enforcement.
High Rollers Beef Up Security
For many, the only solution is private protection. Arsalan’s abductors included corrupt police officers, underscoring his distrust of local institutions. Others are turning to private security: Pijlman says Paris, reeling from recent high-profile kidnappings, now leads in new security requests, with guards hired for everything from conferences to full-time family protection.
This year’s Ethereum Community Conference in Cannes will feature the most extensive security in its history, with police, special forces, and the coast guard mobilised months in advance.
Crypto companies, too, are adapting. Kraken, the second-largest US exchange, has assigned armed guards to top executives, while Origin Protocol co-founder Matthew Liu said his company is considering a security team and has adopted multi-signature wallets to reduce vulnerability.
Losses Cut Deep, Few Legal Remedies
Criminals don’t only target the ultra-rich. A Florida-based gang stole from average investors, using stolen data to carry out home invasions across three US states. One elderly couple lost $3 million in crypto worth nearly $10.7 million today and were held at gunpoint in their home.
Despite the scale of these crimes, few victims can expect restitution. GlobalData reports only 10% of crypto holders have insurance for digital assets, while just two firms offer kidnap-and-ransom policies. Recovering stolen funds is often a solo mission.
Arsalan’s Resolve
Arsalan has traced and recovered about $160,000, but Pakistani police are holding it as evidence, likely for years. He continues trading, saying, “They grabbed my money but they did not grab my brain.”
He recently returned to social media, undeterred by the trauma. “No amount of threats will make me give up crypto,” he said. To him, public blockchains still feel safer than traditional institutions a paradoxical comfort in a world where digital fortunes increasingly invite real-world dangers.
