🔑 Private keys, the core of the problem

Cryptocurrencies rely on the private key. This unique code grants full access to the wallet. Without it, no transfer can happen.

Exchanges like Binance or Coinbase also use passwords and two-factor authentication. If attackers get these credentials, they can empty an account within minutes.

🚨 How kidnappers operate

Criminals don’t hack the blockchain. That would be impossible. They instead force the victim to cooperate.

Under threat, victims unlock their phones, hand over passwords, or approve transactions. Some thieves also seize hardware wallets like Ledger or Trezor and demand the PIN and recovery phrase.

📊 Security challenges

Security depends on how users manage their keys. An unencrypted phone or weak passcode creates a major weakness.

Experts recommend storing private keys offline on hardware wallets. They also advise against saving recovery data in the cloud.

In 2024, Chainalysis found that more than 20% of retail holders did not know where their recovery phrase was stored.

💸 Laundering stolen funds

Once criminals get the funds, they move fast. They use mixers like Tornado Cash (banned in the US since 2022) or offshore platforms. Then they convert the crypto into stablecoins such as USDT and cash out.

Europol estimates that violent crypto crimes account for less than 1% of illicit flows. Still, that number has risen since 2022.

📰 The Swiss case in September 2025

In early September 2025, three men kidnapped a 22-year-old Swiss near Lausanne. They forced him to transfer part of his Bitcoin and Ethereum. Police tracked them through phone geolocation and public blockchain transactions. The victim was freed on Sept. 3, 2025, after two days in captivity.

Investigators said the kidnappers followed a common method: restraining the victim, forcing him to unlock his phone, and approve the transfer. They then sent the funds to wallets tied to foreign exchanges.

Thanks to a European exchange, part of the crypto was frozen. This swift cooperation showed that law enforcement can still disrupt such crimes.