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A rise in violent crimes aimed at Bitcoin owners is drawing fresh alarm from security experts and industry groups.

According to speakers at the Baltic Honeybadger 2025 conference in Riga, Latvia, criminals are increasingly using stolen personal data plus on-chain analysis to find and attack people who hold Bitcoin and other digital assets.

The attacks—often called “wrench attacks”—can include kidnapping, physical assault, and extortion to force victims to hand over private keys.

Every week, at least one Bitcoin holder is reportedly kidnapped, tortured, extorted, or worse, say conference sources.

Data Leaks Fuel Criminal Targeting

According to Alena Vranova, founder of hardware wallet maker SatoshiLabs, more than 80 million crypto user identities are exposed online, and roughly 2.2 million of those records include home addresses.

Based on reports from Chainalysis, the number of wrench attacks in 2025 has already nearly matched the worst year on record and could double by year-end if trends continue.

US exchange Coinbase confirmed in May 2025 that some customers’ names and addresses were exposed in a hack, and Cybernews reported databases containing over 16 billion stolen credentials from large tech firms such as Apple, Facebook, and Google.

Criminals Are Working Faster And Smarter

Reports have disclosed that attackers combine leaked KYC data with blockchain analysis tools to spot high-value targets. Once a potential victim is identified, criminals may launch phishing campaigns, carry out SIM-swap attacks, or escalate to physical violence to obtain private keys.

Cases cited at the conference include kidnappings over amounts as small as $6,000 in crypto, and murders linked to roughly $50,000, undercutting the assumption that only the richest holders are at risk.

As more people enter the market during the bull run, organizers warn that less experienced investors can become easy marks.

Security Measures Move From Digital To Physical

Based on industry response, many high-profile holders are boosting physical security, hiring private guards, and taking steps to obscure their public crypto profiles.

Everyday investors are also being urged to adopt better operational security: use non-custodial wallets, enable multi-factor authentication that does not rely on SMS, use unique passwords and password managers, split holdings across multiple secure locations, and avoid talking publicly about the size of one’s holdings.

Experts stress that no single step is foolproof; a layered approach that separates key material and limits the amount any one person can access is recommended.

Featured image from Unsplash, chart from TradingView

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Ripple Warns Investors Of Rising XRP Scams

On July 23, Garlinghouse took to X social media to raise the alarm on a sharp rise in XRP scams, urging investors and community members to stay alert. According to the Ripple CEO, scammers are capitalizing on market momentum and community excitement to ramp up impersonation schemes, particularly targeting unsuspecting XRP holders.

One of the most notable developments flagged by Garlinghouse is a recent surge in fraudulent activity on YouTube, where scammers have taken over existing channels, rebranded them to resemble recognized Ripple accounts, and begun promoting misleading content that impersonates the crypto company and its executives.

In its official X account, the Ripple team stressed that these YouTube accounts are legitimate and do not belong to the crypto firm, despite appearing convincing. In many cases, the usernames have been altered to mimic the company’s official handles, often making it difficult for unsuspecting users to identify the deception.

These scam videos frequently promise giveaways, rewards, or investment multipliers, usually asking users and investors to send XRP in exchange for a larger return. Garlinghouse has emphasized that neither he nor Ripple will ever request XRP from anyone under any circumstances. 

To combat the growing threat of skyrocketing crypto scams, Ripple is actively and aggressively reporting these fraudulent accounts and encouraging its community to do the same. The company has reiterated that its official channels remain the only trusted sources of communication and provides a direct reminder to always verify account handles and links before engaging. Notably, Garlinghouse concluded his post with an important reminder to stay vigilant against avoidable losses. He warned that “if it sounds too good to be true, it probably is.” 

Ripple Alert Highlights Broader Threat Amid Market Recovery

Beyond the immediate focus on the YouTube impersonation scams, Garlinghouse’s report touches on a broader trend of escalating crypto fraud that tends to spike during periods of market recovery or growing optimism. This pattern, described by the Ripple CEO as “like clockwork,” suggests that malicious actors closely monitor community sentiment and time their campaigns to exploit emotional and financial excitement.

In a broader context, the rise in XRP scams has coincided with the recent surge in the altcoin’s price to above $3.6. Additionally, they come after bullish news like Ripple’s growing regulatory clarity and legal win against the US SEC. As the XRP price inches closer to ATH levels and gains more momentum, bad actors are leveraging this wave of optimism to cast a wider net, targeting investors through sophisticated scams and fraudulent schemes.

United States congresswoman Marjorie Taylor Greene said that the GENIUS stablecoin bill creates a “backdoor” for the government to effectively create a central bank digital currency, veiled as privately issued crypto tokens.

The lawmaker said that regulated stablecoins feature “functional surveillance capabilities,” which make them indistinguishable from CBDCs. In a separate social media post, she added: 

“This bill regulates stablecoins and provides for the backdoor central bank digital currency. The Federal Reserve has been planning a CBDC for years, and this will open the door to move you to a cashless society and into digital currency that can be weaponized against you by an authoritarian government controlling your ability to buy and sell.”

Rep. Greene’s comments echo a growing tide of individuals in the Bitcoin and crypto communities sounding the alarm on regulated stablecoins and the potential for these privately-issued tokens to become captured by the state.

Related: GENIUS Act heads to Trump’s desk: Here’s what will change

The Bitcoin and crypto communities voice the same concerns

“The Genius Act forces stablecoins into CBDC compliance and control; functionally identical to a CBDC, without the scary name,” Bitcoin advocate Justin Bechler wrote in a July 19 X post.

Saifedean Ammous, author of “The Bitcoin Standard,” argued that the US dollar, in any form, is essentially a central bank digital currency that is already monitored by the state and increasingly digital.

“Governments realize that if they control stablecoins, they control financial transactions,” Jean Rausis, co-founder of the Smardex decentralized trading platform, said.

The executive added that the ability to freeze or rollback transactions and surveil centrally-managed stablecoins makes them indistinguishable from a CBDC.

The GENIUS bill was amended in March to include stricter anti-money-laundering provisions, sanctions compliance, and know-your-customer requirements, necessitating financial surveillance and the ability to censor transactions.

In October 2024, Curve Finance founder Dr. Michael Egorov told Cointelegraph that centralized stablecoins carry the risk of regulatory capture, including government seizure of the underlying fiat assets held in bank accounts or custodial institutions backing the digital tokens.

Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight

]]> https://earlybirdsinvest.com/us-lawmaker-sounds-alarm-on-genius-bill-says-its-a-cbdc-trojan-horse/feed/ 0 48598 https://earlybirdsinvest.com/fatf-sounds-alarm-over-rising-stablecoin-misuse-as-global-crypto-rules-lag/ https://earlybirdsinvest.com/fatf-sounds-alarm-over-rising-stablecoin-misuse-as-global-crypto-rules-lag/#respond Fri, 27 Jun 2025 21:39:57 +0000 https://earlybirdsinvest.com/fatf-sounds-alarm-over-rising-stablecoin-misuse-as-global-crypto-rules-lag/

The Financial Action Task Force (FATF) said in a report released this week that global efforts to regulate virtual assets and service providers have improved but remain incomplete, with illicit use of stablecoins accelerating sharply in 2025.

The intergovernmental watchdog’s sixth targeted update on the implementation of its standards found that although 73% of jurisdictions surveyed have passed laws enforcing the so-called Travel Rule for crypto transfers, enforcement remains limited.

The report noted that out of the 85 countries with Travel Rule laws, nearly 60% have yet to issue compliance findings or directives.

The report also highlighted a record-breaking $1.46 billion virtual asset theft this year by North Korean actors from the crypto exchange Bybit.

FATF noted the hackers used social engineering and complex laundering networks involving mixers, OTC traders, and more than 125,000 Ethereum wallets. Only 3.8% of stolen funds were recovered, highlighting persistent difficulties in tracing and repatriating crypto-linked proceeds of crime.

Overall, stablecoins have become the dominant vehicle for illicit on-chain activity, driven by their low cost, fast settlement, and broad liquidity.

FATF cited private sector estimates showing over $30 trillion in stablecoin volume during the past year, alongside the growth of ‘pig butchering’ scams and professional scam networks employing AI-generated chatbots and deepfakes to defraud victims.

Despite these risks, the report found that only one jurisdiction is fully compliant with FATF Recommendation 15 on virtual asset oversight. Meanwhile, 29% of countries were rated ‘largely compliant,’ while about half remain only partially compliant and 21% are not compliant at all.

FATF urged jurisdictions to accelerate licensing and registration of virtual asset service providers, strengthen enforcement against unregistered entities, and implement measures to monitor decentralized finance (DeFi) arrangements.

The report also noted that around half of the surveyed regulators require DeFi projects with identifiable control parties to register as VASPs, but enforcement remains rare.

Looking ahead, FATF plans targeted reports on stablecoins, offshore VASPs, and DeFi over the next year. The regulatory body warned that as stablecoins approach mass adoption, uneven global regulation will heighten illicit finance risks and hamper coordinated responses.

The next comprehensive update on Recommendation 15 implementation is due in 2026.

Mentioned in this article

What you need to know

• The Garmin Vivoactive 6 is expected to arrive soon, based on information from Gadgets & Wearables and Fitness Tracker Test.
• Like the Vivoactive 5, it should have an aluminum bezel, two buttons, 1.2-inch AMOLED touchscreen, all-systems GNSS, and music storage.
• It’ll allegedly sport the same Elevate v4 sensor as most last-gen Garmin watches, precluding any ECG support.
• It’s expected to ship in four colors — black, white, green, and pink — and cost about $300 like its predecessor.

Anyone eagerly awaiting the Garmin Vivoactive 6 shouldn’t have to wait much longer. After a four-year gap between the 2019 Vivoactive 4 and 2023 Vivoactive 5, Garmin will leap ahead next month with a 6th-gen model that’s pretty similar to the last version, based on leaked renders and specs from retailers.

Gadgets & Wearables first posted renders of the Garmin Vivoactive 6 on Saturday, before Fitness Tracker Test followed up with detailed specs and a list of new features coming to Garmin’s popular all-arounder — as well as a prediction that it’ll arrive before the end of April.

According to both sites’ information, the Garmin Vivoactive 6 is likely to ship in one 42mm case size with a 1.2-inch AMOLED touch display, like the Vivoactive 5. Also like its predecessor, it’ll have an aluminum bezel on top of Garmin’s typical fiber-reinforced polymer case materials.

Reportedly, it’ll ship in Black, Bone, Jasper Green, and Pink Dawn, as shown in the renders above. Compared to the Slate, Cream Gold, Metallic Navy, and Metallic Orchid of last generation, the Vivoactive 6 has its own personality. You can also see a more elevated top-right button in these renders, which could make it easier to press.

According to FTT’s Florian, the Vivoactive 6 will be slightly skinnier than the Vivoactive 5 (10.9mm vs. 11.1mm) but weigh the same 26g without the strap; it also has the “same battery life,” which would mean 11 days per charge or 5 with AOD active.

What’s more disappointing is that both sites suggest that the Vivoactive 6 won’t have ECG support, meaning it has the same Elevate v4 sensor as most Garmin watches from the past few years, besides the Venu 3, Fenix 8, and other expensive models like the Enduro 3.

Garmin didn’t give the Instinct 3 new health sensors, either, which we took as a warning sign at the time. The Vivoactive 6 will likely cost much less, and perhaps Garmin sees the Elevate v5 sensor as too “premium” for this lineup; but it’s a shame, as ECG and skin temp readings would absolutely fit this “mainstream” lineup and match better against other fitness watches.

Nor (allegedly) will the Vivoactive 6 have a barometric altimeter, one of our biggest complaints with the last model. Both sites suggest the Vivoactive 6 will add a greater running focus with running power, running dynamics, and PacePro, plus two new satellite systems — BeiDou and QZSS — for better all-systems GNSS tracking. But this just makes the lack of elevation tracking more noticeable.

In happier news, the Vivoactive 6 should get workout animations, something that fits well with the lineup’s target audience of indoor athletes. Of course, this would pair well with the new Garmin Connect+ subscription that’s generating controversy, thanks to its Live Workouts.

FTT says the Vivoactive 6 will get doubled music storage to 8GB for your Spotify or YouTube Music playlists, as well as a mysterious “smart alarm” that we haven’t seen on any Garmin watches yet. In theory, this would be similar to Fitbit’s smart alarm, checking for a light sleep stage before triggering an alarm within a certain window.

Overall, this feels like a fairly iterative update for the Vivoactive watch, assuming that these leaked specs are correct. At the same time, we do like the Vivoactive 5, and the Vivoactive 6 should take its role as the entry-level Garmin watch that we recommend to anyone new to the platform, if and when it arrives in April.