The crypto market is experiencing euphoria as prices surge to new highs. However, as Bitcoin nears $100,000, the biggest task for any crypto investor, besides securing profits, is to ensure their own safety.
Crypto investors are facing a real danger, as evident from the recent high-profile cases of kidnappings and violence against people involved with crypto assets.
Crypto Influencer Body Found in Montreal Park
Late last month, a body was found at the l’Île-de-la-Visitation nature park in Ahuntsic-Cartierville, a borough of the city of Montreal, Quebec, Canada. This week, the dead body was identified and confirmed by provincial police (SQ) to be of 24-year-old Kevin Mirshahi.
No further details have been released about the case, but the investigation is ongoing.
Mirshahi is a cryptocurrency influencer, who was the owner and operator “of a private paid Telegram group called Crypto Paradise Island.”
He was reported last June to be one of four people who were kidnapped from a condo building in Old Montreal. Three of the four missing people were later found by the police, with one still outstanding.
The police arrested and charged a woman in connection with the death last August. Mirshahi was believed by the police to be killed on the day of the kidnapping.
According to the public records, the crypto influencer was the subject of an investigation by the Autorité des marchés financiers (AMF), the regulatory body that oversees the financial sector and is responsible for safeguarding investments in Quebec.
During the bull market of 2021, the administrative tribunal of AMF issued a blocking order “prohibiting the exercise of any activity as a broker or investment advisor” for Mirshahi, two other individuals, and a company. Issued “in the public interest,” the order was initially for one year but was to be renewed for another year in July 2024.
Crypto CEO Kidnapped for a Million-Dollar Ransom
Earlier this month, Dean Skurka, the CEO of Toronto-based cryptocurrency firm WonderFi Technologies, was abducted. The kidnappers made a $1 million Canadian dollars ($720K) ransom demand for his release. Skurka was found safe, unharmed hours after the ransom was paid electronically.
Skurka confirmed the ordeal in an email to CBC Toronto but assured that he and the user funds both were safe.
“The safety and security of all of WonderFi’s employees are paramount. Client funds and data remain safe and were not impacted by this incident.”
– Skurka
WonderFi is a regulated crypto exchange backed by Shark Tank’s Kevin O’Leary that manages $1.35 billion in assets. For its Q3, the company reported a 153% increase in revenue compared to the previous year.
On Nov. 12, WonderFi announced a record weekly trading activity across its wholly owned crypto platforms; Bitbuy and Coinsquare, which Skurka said reflects “a renewed excitement around crypto following the U.S. Presidential election.” This resulted in total assets under WonderFi’s custody increasing by 34% since September to $1.7 billion.
WonderFi also owns the crypto payments platform SmartPay and holds a stake in crypto custodian Tetra Trust, making it one of the most significant players in Canada’s crypto market.
‘Crypto King’ Kidnapped and Tortured
There was also the case of Canada’s 25-year-old self-proclaimed ‘Crypto King’ Aiden Pleterski, who was kidnapped in downtown Toronto and beaten and tortured by five of his alleged victims. Four of those alleged perpetrators were arrested last summer and charged with kidnapping.
The kidnapping occurred in Dec. 2022, with the abductors holding him for three days, during which he was reportedly subjected to torture before a $3 million ransom was demanded for his release.
After his release, Pleterski put up a 12-minute video on social media in which he made an apology to investors, which his lawyer later said was coerced.
“I’m sorry, I really am, I didn’t want to or mean to ruin anyone’s life.”
– Pleterski, seemingly bruised and bloodied, in the video
In May this year, Pleterski, along with his 27-year-old associate Colin Murphy, were arrested and charged with fraud and money laundering by the Ontario Securities Commission in an alleged $30 million ponzi scheme.
The criminal charges have been the result of a 16-month investigation that Canadian authorities called Project Swan.
According to court documents, about 160 investors gave Pleterski and his company around CAD 40 million between 2021 and 2022 to invest in crypto and forex on their behalf. Pleterski reportedly invested less than 2% of the funds and spent the rest on luxury cars, traveling internationally, and renting a lakefront mansion.
Crypto Fortunes and Fears: Why Safety is Key?
These aren’t the only cases that those dealing with crypto assets have been facing. For instance, Ethereum co-founder Anthony Di Iorio announced his decision to leave the sector in 2021 for security reasons. Iorio, who has been traveling with a security team since 2017, also shared his plans to focus on ventures that have nothing to do with crypto space.
Last month, a 59-year-old businessman was kidnapped in Johor Bahru, a city in Malaysia, while he was waiting for a taxi, only to be released later on the same day upon receiving a ransom payment from his family.
This week, Binance reported helping the Royal Malaysia Police (RMP) recover about $1.6 million (which involved both cash and crypto) of the $4.5 million ransom that was paid by the family. The ransom was paid part in crypto and part in cash and Binance investigators helped the law enforcement trace digital asset movements. This also helped the police identify key suspects involved in the criminal operation.
“This case serves as a stark reminder that cryptocurrency can be used in various forms of crime. We urge individuals and businesses to remain vigilant and take proactive measures to protect themselves against such threats.”
– Erin Fracolli, Binance’s Global Head of Investigations
The investigation actually revealed that the victim’s wife was one of the key conspirators in the plot, who worked with other businessmen and Vietnamese nationals to organize the kidnapping.
Calling Binance’s assistance instrumental in tracing crypto flows and identifying key suspects, ASP Nurul Aqila, Senior Officer at the Commercial Crime Investigation Department (CCID), noted the importance of cross-border cooperation in addressing emerging crypto crime threats.
Back in July, parents in Hong Kong, a region known for its low crime rates, were forced to pay HK$5.15 million in USDT stablecoin to get back their three-year-old boy. The local police were able to rescue the child and arrest the suspects.
Now, just last week, a ransomware gang called Hellcat demanded $125,000 worth of French bread in exchange for not leaking 40GB worth of stolen private data from Schneider Electric, which has suffered its third breach in less than two years.
While the baguette demands have been what’s known to the public, in an attempt to stand out in the ransomware market, Cyberscoop reports the group is willing to accept the privacy-centric coin Monero (XMR) in place of bread. Being privacy-focused makes it difficult to track transactions on-chain.
Crypto-related kidnappings and extortions have been on the rise for some time now, especially with digital asset prices rising significantly and, with that, people’s fortune.
Jameson Lopp, co-founder and chief security officer at US-based crypto storage solution Casa, noted that Skurka’s kidnapping was the 171st incident of this kind in the past decade.
“The average crypto person… doesn’t have great physical security.”
– Lopp
The thing is, unlike traditional assets, cryptocurrencies are easier to transfer and are believed to be harder to track, which attracts criminals to the sector. Besides offering limited legal protections, crypto security risks are further exacerbated by the decentralized nature of cryptocurrencies. This means that once you have made a transaction and transferred your assets, it cannot be reversed, making it unlikely that you will ever get your crypto back.
What’s more is that crypto participants often remain unprepared for security challenges and lack proper measures despite the growing risks.
Thus, rising crypto prices are not just a moment of joy but also a time to focus on and strengthen your security.
Click here for a list of top crypto research tools.
Here’s How to Fortify Your Safety
Now that you know why focusing on charts is not enough to ‘make it,’ you must also be using the appropriate security measures to protect your crypto fortune. Let’s take a look at various ways you can achieve that. Be Well Informed
The very first step that you should be taking before you even enter the sector is familiarizing yourself with all things crypto. This includes the technical side of things, such as different types of cryptos, their blockchain foundation, and more.
It also means keeping up to date with the latest crypto scams, targeted attacks, and other risks that you may have to face. Simply having an idea of risks isn’t enough; you need to learn about security measures so that when the need arises, you know what to do. This preparedness will help you stay calm and act without haste or fear.
Additionally, you can visit online crypto forums, join official Telegram groups, follow trusted news and media outlets, read relevant blogs, sign up for scam alerts, and make use of content provided by crypto security platforms to stay informed and regularly update your knowledge of crypto security measures.
Move Your Crypto Out to Secure Wallets
Given that exchanges hold billions of dollars worth of crypto, they are an attractive target for scammers. While centralized exchanges (CEX) offer convenience, keeping your crypto on these platforms exposes you to risks such as hacks and attacks and even bankruptcy. To protect yourself from these threats, transfer your crypto from online platforms to a more secure option, like hardware wallets.
There’s simply no better option for your crypto than a hardware wallet. Depending on your budget, you can find a lot of different options. Ngrave Zero, Ledger, Trezor, SafePal, and CoolWallet are some popular hardware brands to store your crypto offline. These wallets are physical devices that keep your private keys, that give access to your crypto, completely secure away from online vulnerabilities.
Just make sure to keep your ‘secret recovery phrase’ offline, preferably written on a piece of paper, and stored in a safe place. While cost and inconvenience are the biggest drawbacks of hardware wallets, they are a necessity if you value peace of mind.
Interestingly, hardware wallets also come with a “hidden wallet” feature that allows you to protect your assets in situations where you are forced to reveal your wallet’s passphrase under coercion. Using this feature, you can set up multiple wallets that are accessible with different passphrases. To make the best use of it, store a small amount of crypto in the decoy wallet and practice with both so that when needed, you can navigate them confidently.
Make Use of Strong Passwords & 2FAs
No matter which wallet you choose to secure your crypto, always use strong, unique passwords. Ensure you have different passwords for different platforms, and use a password manager if you’re worried about forgetting them. Additionally, you must enable two-factor authentication (2FA) for all crypto-related accounts, which requires a code to access your account or withdraw assets. Finally, regularly update software to stay protected.
Work with Reputable Platforms
While unregulated and new platforms may offer attractive features like no KYC, juicy bonuses, and low costs, you could end up paying the price in other ways. For instance, once you have built up your account, you might find yourself unable to withdraw your funds.
Here, trusted platforms with a good track record and strong security policies are preferable. Binance, the world’s largest crypto exchange, is one great example that has also helped its users recover funds in troubled situations.
Another thing to keep in mind is to ensuring that you are using a legitimate platform and not downloading a fake wallet, website, or application. To avoid falling for fake crypto software, always double check URLs, use official websites, and steer clear of click-through advertisements.
It’s also best to avoid peer-to-peer deals with unverified individuals, as you may get scammed. Sharing your sensitive details can also make you a target of hacks and other security threats. And if it’s an in-person trade, then there’s an even bigger risk to physical safety.
Click here for a list of five best cryptocurrency exchanges.
Maintain Anonymity
If you’ve managed to make life-changing money in crypto, avoid showing it off. In today’s age of social media, it cannot be stressed enough that you should not share expensive purchases or your substantial crypto portfolio online. Ideally, it’s best to remain completely anonymous if you’re involved in crypto. If you are already doxed, try to limit what you share with others.
Limiting your personal exposure is important not only for social media but also in the real world, especially if you attend crypto events or meetups. There have been cases of individuals meeting at crypto conferences and later being robbed or assaulted. So, travel discreetly and be aware of social engineering attacks.
In social engineering attacks, perpetrators manipulate people into giving away their sensitive information. To protect yourself from this major cybersecurity threat, always be wary of suspicious emails, avoid discussing your crypto holdings publicly, and if something seems too good to be true, then it certainly is.
Say No to Public WiFi, Use Secure Internet Instead
When going out for a drink, traveling, or simply being away from home and needing to make crypto transactions, avoid going for the easiest and most free option—public WiFi. The risk of using public WiFi is that others can intercept your internet traffic and use that information to find what sites you are visiting and even your transactions. While you may not get your crypto stolen this way, it can certainly put a target on you.
Avoiding the public WiFi networks isn’t enough, though. For enhanced safety, consider using a secure internet connection to log into your crypto accounts and trade. Investing in privacy tools, such as a good quality VPN, can help hide your IP addresses when accessing crypto platforms.
Always be Aware & Monitoring
When out and about in the real-world, be aware of your surroundings. And try not to brag or even discuss, for that matter, about your crypto investments, trades, or gains in public, especially in environments you are unfamiliar with. This also means being cautious when accessing crypto wallets or exchange accounts publicly.
Another thing that you should do to reduce your crypto risk is to have a plan for emergencies. This could mean sharing access to your wallet with a trusted person or having a dead man’s switch, a fail-safe to access your crypto in an emergency.
Conclusion
So, it’s been a decade and a half since Bitcoin’s existence that brought us not just financial freedom but also unique risks.
While crypto adoption has risen significantly, and now more and more people are aware of and involved in crypto, authorities are still not well-versed in the matter. Amidst this lack of protection, as we shared, the dangers of being part of crypto are extremely high and can cost you not just your crypto fortune but even your life and your family’s safety— especially in these times when the meteoric rise in crypto prices is attracting so much attention.
So, it’s extremely important that you invest your time and money in incorporating safe practices to maintain your privacy, secure your assets, and protect your life!
