Physical Bitcoin Attacks and Burglaries on the Rise

Info creator Jameson Lopp, who published a detailed list of physical attacks targeting cryptocurrency holders on GitHub.

Cryptocurrency related robbery and extortion appears to have increased significantly over the last year as criminals become aware of the lucrative nature of crypto assets and the irreversible manner in which they can be separated from their owners.

Lopp's list of crypto-related physical robberies includes a number of attacks targeting crypto infrastructure, such as the theft of Bitcoin ATMs or mining hardware, but the rise in attacks targeting cryptocurrency owners in which victims are kidnapped or extorted for crypto assets is particularly concerning.

The first crypto-related kidnapping, which occurred in 2015, saw New York firefighter Dwayne Richards kidnapped and robbed of $1,100 in crypto, with more recent reports from Russia in showing an increase in violent attacks with the mutilation and robbery of a cryptocurrency holder in Moscow.

Home invasions of cryptocurrency holders are also increasing, with five men arrested in Cumming, Georgia for planning an armed home invasion of a cryptocurrency investor in January 2018.

The home invasion of Skycoin architect "Synth" became one of the most notable physical Bitcoin robberies of 2018, with assailants stealing over 18 BTC. Cryptocurrencies, while offering a broad spectrum of advantages in allowing holders to operate as their own bank, also require holders to maintain similar security standards.

Despite the security offered by hardware wallets many physical cryptocurrency robberies occur as a result of criminals targeting individuals that advertise cryptocurrency-related wealth, with attackers aware of the asset value of the victim.

The rise of physical crypto crime can be attributed to the highly fungible nature of cryptocurrencies such as Bitcoin and the ease with which they can be forcibly taken from unsuspecting cryptocurrency holders who, in many cases, either practice insufficient security techniques or are outspoken regarding their cryptocurrency gains.

Pavel Makushin, a 23-year old Russian cryptocurrency investor, was found dead in a St. Petersburg apartment subsequent to a robbery where assailants stole over $3 million in cryptocurrency.

In addition to targeting high net worth individuals within the cryptocurrency ecosystem, criminals also appear to be targeting cryptocurrency traders operating via the highly popular LocalBitcoins platform, which facilitates face-to-face cryptocurrency trades.