Crypto moguls face reckoning after alleged kidnapping and torture: ‘The cost of doing business’
The entire cryptocurrency community is on edge following the alleged kidnapping and torture of seemingly obscure Italian meme coin millionaire Michael Valentino Teofrasto Carturan in a Soho apartment.
While the horrific crime, for which crypto bros John Woeltz and William Duplessie have been arrested, is obviously very close to home, it’s part of a rash of kidnappings in recent months.
France, in particular, has been targeted.
In Paris at the beginning of May, the 60-year-old father of a cryptocurrency millionaire was held hostage with his finger severed until his son paid a €5 million ransom.
Later this month, four armed men in the City of Light attempted to kidnap the daughter of Paymium CEO Pierre Noizat. Luckily, a plucky shop owner managed to thwart the attackers with a fire extinguisher. Earlier this week, 24 people were taken into custody in connection with the attempted kidnapping.
And in January in Vierzon in Central France, the co-founder of Ledger, David Balland, and his wife were abducted and held for ransom, part of which was paid by his co-founder. Law enforcement were able to rescue the couple but not before Balland had a finger cut off; ten people have been arrested.
What has surprised me the most over the last week as the New York story unfolds is how many people in crypto have — at least until now — posted so openly about their wealth and flaunted their belongings, while, at the same time, eschewing security measures. Notable security experts I spoke with told me that as of last week, those with crypto money haven’t prioritized protection.
“One of the key issues — crypto millionaires (and billionaires) are nouveau riche and got rich quickly through crypto,” Mac Segal, whose AHNA Group provides security for wealthy individuals and corporations, told me. “They’re posting their homes, their helicopters, and their sneakers on Instagram — they are not cautious about their online footprint.”
Sources in the cryptocurrency world told me that only a minority of those in crypto are concerned with privacy. They won’t share their names online, make purchases through trusts and are attracted to crypto because it provides anonymity. But, the majority are in it for the glitz and glamor.
Conspicuous consumption is the whole point — it’s central to their motivation in getting into digital currency in the first place.
“The euphoria of crypto is showing you were right and now you’re successful,” Aubrey Strobel, Bitcoin investor and advisor to crypto companies Lolli and Trust Machines told me. She added that the combination of “ego and new money” has created a lot of problems.
To be sure, notable billionaires like the Winklevoss twins or Michael Taylor are very protected — many of these billionaires also have wallets that [are secured by] bigger companies like Circle or Kraken, which have invested heavily in security for executives. But that isn’t necessarily true on an individual level.
“Crypto millionaires don’t think of themselves as Bill Gates or Steve Jobs,” Segal said. “They don’t realize how vulnerable they are online.”
But this latest attack seems to be changing that. Even the lesser known crypto magnets are aware they may be in danger.
One crypto millionaire said recent security concerns were enough to nudge him to relocate to a state where he could legally own a firearm.
He also added that he had canceled some recent conference appearances but noted it’s not unique to him, “anyone active or high profile in crypto gets threats.”
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Another source who has made their money in crypto told me that in light of the recent attacks in France, some digital coin companies based in Europe are considering relocating as their employees agitate for better safety measures.
Targeting someone who has made a lot of money from cryptocurrency is, in many ways, the perfect crime. An obscure wallet is impossible to trace and the transactions are final.
One founder in crypto seems resigned to it, “This is the cost of doing business.”
But another source explained that it could cause the industry to go underground.
“You don’t have to be a big figure to be kidnapped … now people are afraid they may say something at a party and they’ll be targeted.”
For now, it seems like the huge displays of wealth may be diminishing and the days of bragging at parties about a meme coin success and how much money you made may be over.
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