This week, the crypto market has been experiencing a price upswing, driven by favorable economic developments, including the recent election and FOMC results, with Bitcoin leading the surge. However, this optimism is tempered by crypto-related crimes, which have affected its victims either financially or emotionally.
Three Crypto Crimes This Week
Earlier this week, Rooch Network co-founder Haichao Zhu narrowly escaped robbery in Bangkok, targeted upon arrival for Ethereum’s Devcon conference. Likely recognizing his connection to the crypto event, two men wielding knives stole his phone, suggesting that their primary motive was crypto theft as the phone might grant them access to his digital wallet.
On Wednesday, a Canadian news outlet reported that Dean Skurka, CEO of WonderFi, a Toronto-based crypto firm, was kidnapped downtown during rush hour and released after a $1 million ransom was paid electronically. The incident occurred near University Avenue and Richmond Street West, with Skurka being forced into a vehicle by suspects demanding money.
The same day, Forbes reported that the Hellcat ransomware group, led by spokesperson Grep, breached Schneider Electric’s developer server, stealing 40GB of data and demanding $125,000 in Monero cryptocurrency. Initially, they jokingly requested payment in French bread.
Security researcher Hüseyin Can Yuceel considers this a marketing stunt to establish credibility for future ransomware-as-a-service operations. Schneider Electric confirmed the incident and assured its users that products and services remain intact, claiming its Global Incident Response team is investigating.
Staying Safe Amidst Crypto Crimes
Crypto crimes include scams and schemes aiming to exploit investors by stealing digital or physical assets. Phishing scams create fake websites or emails resembling legitimate platforms, while Ponzi and pyramid schemes promise unrealistic returns. Fake initial coin offerings (ICOs) and pump-and-dump schemes artificially inflate prices, leaving investors vulnerable.
As crypto prices surge, more scams targeting industry newcomers are likely to surface. Users can watch for red flags, including unusually high returns, lack of transparency, pressure to invest quickly, unsolicited offers, and manipulative marketing tactics. Legitimate projects provide detailed information, credible teams, and clear objectives.
Crypto investors can protect themselves by researching projects thoroughly and using secure wallets and connections. Users can enable two-factor authentication, rely on credible sources, and stay updated on crypto trends and security measures. Background checks, whitepaper analysis, and community feedback can also help verify legitimacy.
