Locals say kidnappings of Russian crypto holders are on the rise

People interviewed by daily business newspaper Delovoi Petersburg in St. Petersburg, Russia, revealed that crypto investors in the country are increasingly facing hybrid attacks that combine wallet hacking with theft and threats of physical violence.

According to analysts, the main losses in cryptocurrencies occur due to owner carelessness or mistakes in saving passwords or seed phrases.

Now, at the intersection of cryptocurrency innovation and organized crime, kidnapping of cryptocurrency investors is becoming more common, exploiting the very transparency and decentralization that made cryptocurrencies revolutionary.

Russia has become a hotspot despite the emergence of notorious state-sponsored groups.

Attackers use leaked information from verification services and social media

Unlike traditional robbery, cryptocurrency kidnapping allows criminals to demand large sums of money that can be transferred quickly and discreetly. The ease and efficiency of such transactions highlights the growing risks associated with digital crime.

From prominent executives and influencers to unsuspecting ordinary holders, no one in the crypto community is completely immune. According to Alexander Gostev, chief technical expert at Kaspersky Lab, attackers are using information leaked from verification services and social media to create documents about digital asset owners.

“There are cases where they first steal data and then create dossiers containing the victim’s address, daily life, assets, etc. This is then used for extortion or kidnapping. Most incidents occur quietly. Victims are afraid to come forward.” Gostev He explained.

In Russia, media recently revealed that a cryptocurrency billionaire who was also a fraudster was kidnapped and murdered along with his wife. as reported According to Cryptopolitan, three suspects, Konstantin Shakut, Yuri Sharipov and Vladimir Dalekin, all Russian nationals, were arrested.

Additionally, the Regional Department of the Russian Ministry of Internal Affairs reported that a 60-year-old pensioner from Kaliningrad lost nearly 3 million rubles while trying to make money with cryptocurrencies.

Even ZachXBT, a prominent blockchain investigator who handles complex fraud cases, singled out Russia as one of the countries facing the most problems, saying:Based on my own experience, I have ranked the bottom five countries with the highest number of cryptocurrency-related victims: Nigeria, India, Canada, United Kingdom, and Russia. Even if they contact me, I may be forced to decline formal assistance because the case is stalled. ”

To that end, Mining Depot CEO Artem Kartashov advised crypto market participants to take various security measures, from hardware wallets to unique and complex passwords. Large crypto investors prefer shared access schemes, while mining farm operators equip their facilities with video surveillance systems and employ armed security guards.

Russian authorities prepare to deal with crypto criminals

Russian authorities are preparing to confiscate cryptocurrencies during criminal investigations under a new law. The document, submitted by the government in April, establishes a mechanism for the seizure and confiscation of digital coins involved in criminal cases.

Main text passed Interfax news agency reported last week that the Russian Federation has added a clause to its Criminal Code and Criminal Procedure Code that recognizes virtual currencies as property.

The prominent economic newspaper Kommersant pointed out in an article: “Law enforcement agencies will now be able to formally consider digital currencies as property and apply enforcement measures.”

Authorities will rely on the cooperation of foreign-based trading platforms if they need to confiscate crypto holdings as part of criminal proceedings.

On the other hand, the government turned around It focuses on the use of a new consumption surveillance system to identify illegal cryptocurrency mining operations in the country. A more aggressive approach, aided by anonymous signals from residents, has already yielded results, including the recent discovery of a significant underground facility in western Russia.