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Business Insider
a day ago
- Business
- Business Insider
BTC, ETH, XRP: Crypto Thefts Hit Record $2.1 Billion in Year's First Half
Cryptocurrency investors have lost $2.1 billion to hacks, thefts and scams in this year's first half, the worst six-month period on record for the security of digital assets such as Bitcoin (BTC), Ethereum (ETH), and XRP (XRP). Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter A new report from TRM Labs found that there have been 75 major incidents related to cryptocurrencies in the first six months of 2025. That topped the previous first half record set in 2022 by about 10% and nearly matched the amount of crypto assets stolen in all of 2024. TRM Labs blames the rise in crypto thefts on North Korea intensifying its cyber attacks in the crypto space. Researchers say North Korean-linked groups are responsible for $1.6 billion, or 70% of all the stolen funds from digital assets this year. State Actors The biggest hack that occurred in this year's first half was the $1.5 billion Bybit hack that took place in February. The Bybit attack is widely viewed as the largest crypto theft in history and is believed to have been perpetrated by North Korea. TRM Labs says that crypto hacks and cyber attacks by nation states are evolving and pose the biggest threat to investments related to digital assets. Additionally, more than 80% of the crypto funds stolen in this year's first half stemmed from infrastructure-level breaches, including private key thefts and front-end hijacks. Bitcoin, the largest crypto by market capitalization, has risen 15% this year. Is BTC a Buy?
Yahoo
a day ago
- Business
- Yahoo
Crypto's Worst Six Months Yet? North Korea Hacks Lead to $2.1B in Thefts
Crypto investors lost over $2.1 billion to hacks and exploits in the first half of 2025, marking the worst six-month period on record for crypto security and an indication of some nation-states intensifying their cyber campaigns in the crypto space. The 75 recorded incidents crossed the previous H1 high from 2022 by roughly 10% and nearly match the entire 2024 total, a TRM Labs report released Friday said. But raising alarms is who is doing a major part of the stealing. Researchers say North Korean-linked groups are responsible for $1.6 billion, or 70% of all stolen funds this year. At the center of the surge is the $1.5 billion Bybit hack in February, now believed to have been carried out by North Korea, marking the largest crypto theft in history and skewing the year's average hack size to $30 million — or double last year's levels. The threat isn't limited to Pyongyang. On June 18, a group believed to be linked to Israel, Gonjeshke Darande (Predatory Sparrow), stole $90 million from Iranian exchange Nobitex, reportedly in retaliation for the platform's alleged role in sanction evasion. The stolen funds were sent to vanity addresses (which are un-spendable by design and sent tokens are deemed burnt), suggesting a political motive over profit. Attack vectors are evolving fast. Over 80% of stolen funds stemmed from infrastructure-level breaches, including private key thefts and front-end hijacks. These attacks, often involving social engineering or insider access, are proving to be ten times more lucrative than traditional smart contract exploits. DeFi vulnerabilities, including flash loan and reentrancy attacks, which were prevalent in 2021-22, accounted for a relatively small 12% of the losses.
Yahoo
6 days ago
- Business
- Yahoo
Crypto Kidnappings Are on the Rise. Should Investors Be Worried?
Increasing numbers of crypto investors have been victims of kidnapping, wrench attacks, and home invasions. Thieves are using social media to profile potential crypto targets. Don't let criminals change your investment strategy, but do take precautions. 10 stocks we like better than Bitcoin › Crypto kidnappings and so-called wrench attacks have been in the news recently. In one high-profile case, kidnappers in France abducted Ledger co-founder David Balland and his wife and demanded a significant crypto ransom for their release. Closer to home, criminals allegedly held and tortured an Italian entrepreneur for 17 days in a Manhattan apartment. Sadly, it isn't a new phenomenon. Last year, a Florida resident was sentenced to 47 years for a series of crypto-related home invasions that started in 2022. However, these crimes are on the rise. And the Coinbase data breach that revealed the home addresses of over 69,000 customers does not help investors feel safe. According to Bloomberg, there have been 23 attacks on crypto holders this year, up from just six in the same period last year. The name "wrench attacks" comes from a comic strip that suggested complex encryption wouldn't help against criminals who drugged and beat their victims to get their passwords. Bitcoin (CRYPTO: BTC) has soared to record highs this year. Not only are digital currencies becoming more valuable, but they're also more mainstream. TRM Labs Director Phil Ariss says that makes it more attractive to criminals, including violent ones. "As long as there's a viable route to launder or liquidate stolen assets, it makes little difference to the offender whether the target is a high-value watch or a crypto wallet," he said. TRM Labs specializes in analyzing blockchain data to fight fraud and financial crime. One key reason for the rise in attacks on cryptocurrency holders is that the criminals think crypto transactions are both anonymous and irreversible. The transfer takes place instantly. And, unlike a bank transaction, if someone hands over their crypto keys under duress, there's a perception that transfers can't be traced. That's not actually entirely correct. Authorities are getting better at tracking and prosecuting these types of illicit transactions. Sadly, that message hasn't gotten through to the thieves. Another crypto-specific risk is that potential attackers can use peer-to-peer (P2P) transactions to identify crypto holders. The nature of P2P trading means that individuals talk directly to one another, which can expose their personal information. Finally, the thieves target people who post about their crypto gains. From influencers to key players in the industry, bad actors glean information online. Take, for example, the Taihuttu family, who have travelled the world using only Bitcoin since 2017. Recently, strangers told them they'd used YouTube videos to work out where they were staying, so the family stopped posting. Although home jackings aren't unique to crypto, there are elements of digital currencies that can amplify the risks. For some, one of the attractions of crypto is that you can become your own bank. But if you go that route and store your assets in a non-custodial crypto wallet, you are responsible for security. The idea that your investment decisions could make you a target for criminals is certainly unnerving. But don't let dramatic headlines put you off investing in Bitcoin or any other crypto. There are many reasons you might put a small percentage of your portfolio into cryptocurrency, including a desire to hedge against economic uncertainty. However, cryptocurrency doesn't always work in the same way as stocks or money in the bank. Even with increased adoption, it is still a relatively new asset class, and it doesn't have the same investor protections. If you buy crypto, think about how to store it safely. Here are some steps you can take: Buy crypto through an exchange-traded fund (ETF): If you invest in crypto through an ETF, it is the fund -- not you -- that needs to safeguard the assets. The Securities and Exchange Commission (SEC) has already approved spot ETFs for Bitcoin and Ethereum (CRYPTO: ETH) and looks likely to greenlight others shortly. Be careful what you post on social media: Criminals are using social media to build profiles of potential targets. If you've built a profitable crypto portfolio (or from any other investments), try not to share that information online. Make a plan to store your crypto: If you use a non-custodial hardware wallet, consider storing it in a bank safety deposit box. Most crypto wallet companies offer additional security features, so find out what's available. For example, a multisignature wallet requires several keys to authorize transactions. There are also tools that split your seed phrase into several parts and ways to set up fake dummy wallets. Depending on the size of your crypto holdings, you might consider crypto insurance. An increasing number of insurance companies now offer specific packages for Bitcoin holders. Look for policies that specifically protect against wrench attacks. Cryptocurrency investing is still a new frontier. If you buy into a crypto ETF through a brokerage account, the fund takes care of the custody and security. However, if you buy through an exchange, think carefully about how you will store your assets to minimize both cyber and physical risks. Before you buy stock in Bitcoin, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Bitcoin wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $664,089!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $881,731!* Now, it's worth noting Stock Advisor's total average return is 994% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Emma Newbery has positions in Ethereum. The Motley Fool has positions in and recommends Bitcoin and Ethereum. The Motley Fool has a disclosure policy. Crypto Kidnappings Are on the Rise. Should Investors Be Worried? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
05-06-2025
- Yahoo
'Wrench Attacks' Are Shocking and Violent. It's Only Going to Get Worse.
Sign up for the Slatest to get the most insightful analysis, criticism, and advice out there, delivered to your inbox daily. Late last month, a shoeless and injured cryptocurrency investor fled from a posh Manhattan townhouse and approached the NYPD with a mortifying story: He'd just escaped 17 straight days of torture, having been held in SoHo and peed upon, forced to smoke crack, pistol-whipped, shocked with a Taser, cut with a saw, and dangled over a ledge. All because two fellow crypto enthusiasts, whom he personally knew, desired access to his multimillion-dollar Bitcoin fortune—and were willing to do anything to make him give up the password to his virtual wallet. With the information provided by this battered trader—a 28-year-old Italian named Michael Valentino Teofrasto Carturan—the authorities quickly took the accused culprits, John Woeltz and William Duplessie, into custody. Per police reports, Carturan and Woeltz had ties to an unnamed New York crypto hedge fund; the latter had often 'picked on' the former and, eventually, a disagreement over money led Carturan to fly back to Italy. Woeltz, who'd been spending time with Duplessie partying hard and splurging generously—including on that 17-floor, $30,000-a-month SoHo townhouse—persuaded Carturan to return to NYC early last month and allegedly hired an off-duty NYPD officer to pick him up from the airport on May 6.(It's unknown whether the cop knew what was about to happen.) According to Carturan's account, he only escaped after agreeing to give up the passkey to his Bitcoin wallet, claiming it was stored on his laptop; when his tormenters left him behind to fetch the computer, Carturan bolted from the premises. The NYC torture scheme was just the latest example of a 'wrench attack,' where a thief employs brutal physical violence in order to gain access to a target's virtual cryptocurrency stashes. The phrase hails from a 2009 strip from the popular webcomic xkcd, making the point that any common thief could break into a user's encrypted software simply by battering the owner with a $5 wrench 'until he tells us the password.' It's not a new phenomenon—but these days, it's a troublingly common one. On the same day Carturan left his captives, the crypto-crime watchdog group TRM Labs put out a report on the recent uptick in wrench attacks, noting that such acts 'have escalated in both frequency and severity,' typically involving 'high levels of violence that are extremely traumatic for the victims to endure.' Ari Redbord, a former federal prosecutor who now heads global policy for TRM Labs, gave me a blunt explanation for this surge: 'We've seen the price of Bitcoin double in the last year or so. Criminals tend to go where the money is. These aren't cybercriminals. These aren't hackers. They don't need sophisticated tools.' A few days later, longtime software engineer and Bitcoin maximalist Jameson Lopp gave a detailed presentation on the escalation in wrench attacks at the Bitcoin Conference in Las Vegas. After kicking off with a reference to that xkcd comic, Lopp deployed various graphs of reported wrench attacks over the years, noting that such assaults are still relatively rare compared with other crypto-related crimes (such as hacking or phishing), but that they do tend to spike whenever Bitcoin's value balloons rapidly, like during the crypto craze of 2021. This year, Bitcoin's value has reached all-time highs—and 2025 is on pace to see a record amount of wrench attacks worldwide. Lopp emphasized that the total number will still be 'relatively small'—the previous record-breaking year, 2021, only recorded about 35 attacks, most of them in the U.S. But the details common to these crimes are terrifying enough to warrant extra caution for crypto holders: home invasions, kidnapping, drugging. And, Lopp warned, 'a decent number of these also involve torture.' Bitcoin Conference attendees likely found Lopp's presentation valuable, not least because many crypto investors are reportedly growing more fearful. The Wall Street Journal recently spoke with anonymous 'members of the crypto community' who 'say they are turning their Instagram profiles private and are trying to remove their physical addresses, and those of their families, from public records.' Other crypto enthusiasts are also training in hand-to-hand combat—perhaps not incidental to the fact that, as Lopp stated, many wrench-attack survivors lacked adequate home-security or self-defense tools. Again, such events are rare. But for those who go through them, they're scarring. Just last week, two Russian crypto executives were kidnapped by Chechens in Buenos Aires and forced to pay $43,000 in ransom before the perpetrators fled. A few weeks before that, a 30-year-old American tourist in London was drugged by a man who claimed to be his Uber driver; the kidnapper only let him out once the American gave up his crypto-wallet passkey. In late November, a Las Vegas–based investor left a local crypto conference and was kidnapped by three armed and masked robbers right as he reached home; they extorted him for $4.8 million worth of tokens, then abandoned him in a desert area 26 miles from the Nevada border. That same month, WonderFI CEO Dean Skurka was kidnapped in Toronto, held for a $1 million ransom, then freed when the sum was paid. There are still more recent incidents that I have not rounded up—or that, more chillingly, have not been made public. But a series of repeated kidnappings in France alone (which, in at least two cases, ended with the captive's finger getting cut off) were enough to spur the country's interior minister to convene a group of local crypto entrepreneurs and promise extra protection. (Redbord suspects that the revitalized presence of organized-crime syndicates in France has contributed to the increase of wrench attacks there, as he told me.) Bennett Tomlin and Cas Piancey, reporters for the crypto news site Protos and co-hosts of the Crypto Critics' Corner podcast, told me that the targeted wrench attacks may come down to the fact that fewer and fewer people hoard more and more digital currencies, juicing the value of their stashes. 'There's a pretty significant portion of high-net-worth individuals who have some portion of their money in crypto,' Piancey said, 'and that becomes a much easier target for a robber than demanding all the cash in their house, because there probably isn't any.' The often-public nature of crypto ownership—social media boasting, digital-influencer status, conference attendance, inconsistent cybersecurity measures—also makes it easier to target the most outspoken enthusiasts. That's especially the case at large in-person conferences with rich and powerful registrants like Bitcoin 2025. Unlike traditional means of protecting and storing wealth, like physical banks whose accounts are protected with sophisticated security measures, crypto holders carry immense, untraceable wealth by way of the passkeys to their crypto wallets, whether those are hosted online or stored within a flash drive. When you are your own bank, you risk being broken into like one. It becomes even riskier when any high-profile crypto holders gather together. Tomlin mentioned the fallout from last summer's Brussels Ethereum conference, where multiple attendees were robbed. 'You don't hear about this stuff happening at big conferences that involve bankers,' Piancey explained. 'Someone who has $100 million in crypto is a more appealing target for that kind of attack than someone who has $100 million in the banking system, because one of those is going to be a lot easier to quickly take and hold on to.' In other words: A heavily deregulated and public-facing sector that boasts relatively few buyers—who are even richer as a result—can become a sensible target for an otherwise technologically unsophisticated criminal who knows how to browse social media. At Bitcoin 2025, Jameson Lopp also noted this tendency and gave some advice to his audience: 'Shut up and stop flaunting your wealth.'
Yahoo
30-05-2025
- Business
- Yahoo
Crypto kidnappings on the rise as criminals resort to "wrench attacks"
The recent case of an Italian tourist who was kidnapped in New York City and tortured by people allegedly after his cryptocurrency is drawing attention to a rash of crimes dubbed "wrench attacks," which combine cybertheft with old-fashioned thuggery. The term stems from an XKCD comic that depicts a "crypto nerd's imagination" of the tech know-how that would be required to break into their digital wallet. In reality, the comic notes, all it would take is a heavy $5 wrench to threaten the crypto owner until they revealed their account password. Such attacks have picked up in recent months, partly because stealing a digital wallet can be easier than stealing money from a traditional bank account, said Ari Redbord, global head of policy and government affairs at TRM Labs, a crypto tracing firm. On top of that, the value of bitcoin has surged in recent months, making people with crypto holdings potentially lucrative targets for criminals. "Criminals go to where the money is, and we're seeing a huge rise in the price of bitcoin," Redbord said. "Before, you needed sophisticated cyber capabilities to hack someone, but now you can be a violent criminal who can beat [the password] out of someone." He added, "I don't think I've ever been as taken aback by this type of illicit activity in crypto." The crypto world also has a culture of flaunting wealth via social media posts or appearances at crypto conference, which allows criminals to easily identify potential targets. Bitcoin traded Friday at nearly $105,000 per token, according to CoinDesk — about 53% higher than a year ago. The digital currency has soared partly as people seek alternatives to put their money than traditional investments like stocks and bonds, and as the Trump administration takes steps to promote the use of cryptocurrencies, including establishing a "strategic crypto reserve." How to crack a wallet Cryptocurrency thefts aren't new, but they've typically involved hacking, such as a massive 2022 hack at crypto exchange Binance in which thieves initially stole $570 million, as well as multiple hacks by entities the United Nations found were linked to North Korea. In response to such threats, crypto owners often try and keep their private keys off the internet and stored in what are called "cold wallets." When used properly, such wallets can defeat even the most sophisticated and determined hackers. But criminals have realized they don't need any technical skills to steal crypto assets, Redbord said. All it takes is gaining access to a person's crypto account password, because there's no third-party financial institution standing in the way of accessing funds held in a digital wallet, he explained. Transactions on the blockchain, the technology that powers cryptocurrencies, are permanent. And unlike cash, jewelry, gold or other items of value, thieves don't need to carry around stolen crypto. With a few clicks, huge amounts of wealth can be transferred from one address to another. NYC crypto kidnapping The case in New York City is somewhat unusual because it involves crypto investors allegedly trying to steal the assets of another investor, Redbord said. In that case, investors John Woeltz, 37, and William Duplessie, 33, face charges of kidnapping, assault and unlawful imprisonment of the Italian tourist in an effort to steal his digital wallet containing bitcoin worth millions of dollars. Court papers allege that the pair held the unidentified 28-year-old victim for weeks in an apartment in New York City's fashionable Soho neighborhood. After the victim was abducted, he was shocked with electric wires, his leg was cut with a saw and he was forced to smoke crack cocaine, prosecutors allege. Items including a photo of a gun held to the Italian tourist's head were found in the apartment by investigators. Two New York City police detectives had been working security for the accused kidnappers, CBS News New York has reported. The detective have been placed on desk duty as police investigate. Such incidents have also occurred with increasing frequency in Europe and Asia. Several cases in France have mirrored the New York City attack, with French police arresting 20 people following several alleged kidnapping plots involving crypto investors and their families, the BBC reported earlier this week. In one case, a gang allegedly tried to kidnap the daughter and young grandson of a cryptocurrency company executive in Paris, while earlier this month the father of a crypto millionaire was rescued by police in Paris after he was kidnapped and held for ransom. Aside from keeping a lower profile, crypto investors can take other steps to make it tougher for criminals, Redbord said. One option is to require permissions from several people to access a wallet, for instance. In the meantime, criminals are taking note and may be pursuing similar crimes, he added. "They are seeing successes and trying to replicate these successes," Redbord said. Extended interview: Capitol police chief Thomas Manger on one of "worst days in this job," more Key takeaways from Trump's event with Musk as he departs post Trump celebrates Musk as he departs "special government employee" post with DOGE
