ZachXBT Claims Rise in Offline Crypto Theft Targeting Traders
ZachXBT, a prominent blockchain investigator, has reported a worrying rise in in-person attacks on cryptocurrency traders. According to his recent findings, physical thefts targeting crypto holders, especially through home invasions, have become more frequent. These incidents are not isolated cases; they represent a broader shift towards offline criminal activity in the cryptocurrency space.
The Rise in Physical Crypto Robberies
In an Oct. 10 post, ZachXBT disclosed that he has received an increasing number of messages from victims of home invasion robberies across Western Europe. In these cases, attackers break into victims’ homes and forcibly steal their cryptocurrency. In a particularly alarming case, a trader lost $4.3 million worth of crypto during a home invasion in June 2024.
The perpetrators reportedly obtained the victim’s personal details, including their home address, after a data breach. Pretending to be delivery personnel, the criminals entered the house armed with machetes and forced the victim to transfer funds to two wallet addresses, which remain inactive to this day.
A Troubling Trend of Offline Crypto Theft
This disturbing trend represents a shift in how thieves target cryptocurrency. Historically, cyberattacks such as phishing scams and hacking were the primary methods used to steal digital assets. Now, as more people hold valuable cryptocurrency, criminals are resorting to physical violence. ZachXBT noted that this rise in offline attacks, especially in Western Europe, signals a serious risk for crypto holders who may be unaware of the physical threats posed by their digital wealth.
The blockchain investigator shared additional details via his Telegram channel in late September, revealing that several high-profile individuals in the crypto community had been held at gunpoint and forced to transfer their assets in recent months.
GitHub’s Record of Offline Crypto Thefts
ZachXBT’s claims are supported by data from the online platform GitHub, which tracks incidents of offline crypto theft. Over the last year, there have been at least 15 reported cases globally. In 2023 alone, 17 such incidents were documented, compared to 32 cases in 2021. GitHub’s list of offline thefts dates back to 2014, when cryptographer Hal Finney was reportedly the target of an extortion attempt involving 1,000 Bitcoin.
These numbers highlight the increasing prevalence of in-person crypto crimes. What began as isolated incidents has now escalated into a consistent threat, with criminals going to great lengths to steal digital assets.
Also read: Indiana Man Pleads Guilty to $37M Cryptocurrency Theft from 571 Victims in 2022 Cyberattack
High-Profile Cases of Crypto Home Invasions
One of the more notorious cases involved Nick Drakon, the former CEO of crypto research platform Revelo Intel. On Sept. 5, 2024, Drakon revealed in a social media post that he and his family had been targeted and robbed by a sophisticated criminal group. The thieves reportedly surveilled his home and held his wife and eight-month-old son hostage while forcing him to transfer personal and company funds. Drakon later stepped down from his position due to the trauma caused by the incident.
Another recent case occurred in Florida, where a man was convicted on June 25, 2024, for leading multiple violent home invasions aimed at stealing crypto assets. Between December 2022 and July 2023, the gang carried out several attacks, using kidnapping, violence, and threats to force victims to transfer their cryptocurrency holdings.
Protecting Yourself from Crypto Theft
ZachXBT urged crypto holders to take extra precautions to protect themselves, both online and offline. He advised against sharing personal information, particularly details about crypto holdings, on social media or with acquaintances, as this can make traders easy targets for criminals.
To reduce the risk of being physically targeted, crypto holders should also:
- Use pseudonyms online to maintain anonymity.
- Store hardware wallets in secure, undisclosed locations.
- Keep private keys and recovery phrases secure, possibly using secure, offline methods.
- Install security systems in their homes and be cautious of unexpected visitors.
In-person attacks may be less common than online hacks, but they present a growing threat as cryptocurrency continues to rise in value. Staying vigilant and taking extra security measures are essential steps for anyone involved in the crypto space.
