The CEO of a Canadian-based cryptocurrency company was kidnapped and held for ransom in downtown Toronto on Wednesday.
Kidnappers released Dean Skurka, the president and CEO of Toronto-based cryptocurrency financial firm firm, Wonderfi Technologies Inc (TSE: WNDR), after the payment of a CAD$1 million ransom.
A Toronto Police Service spokesperson said police received a call about a kidnapping near University Avenue and Richmond Street West just before 6 p.m. The suspects forced the victim into a vehicle and demanded money. Authorities later found the man uninjured in Centennial Park in Etobicoke. On Thursday, Skurka confirmed he had been involved in an “incident” on Wednesday but is now safe.
Police continue to investigate and have not released further details. Jameson Lopp, co-founder and chief security officer of Casa, a security firm dedicated to protecting cryptocurrency users, has tracked physical thefts targeting cryptocurrency for around a decade.
He noted that Skurka’s abduction marks the 171st known case where suspects used physical violence to steal bitcoins. According to Lopp, the frequency of these incidents generally correlates with bitcoin’s exchange rate.
“As the price goes up, more awareness of the space permeates throughout society and as a result, more criminally minded people decide they want to try to figure out what the ROI of executing a physical attack against a known crypto holder is,” said Lopp.
On Wednesday, bitcoin’s price soared to a new high, surpassing USD$75,000 and breaking its previous record from March. According to Lopp, the inherent characteristics of cryptocurrency can make it an attractive target for physical theft and extortion, especially compared to crimes like bank robberies.
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Most victims in these cases are regular individuals
Cryptocurrencies are highly portable and easy to seize directly from someone, unlike cash in a bank or an armored truck. Many cryptocurrency holders often lack robust physical security measures. They may also have limited operational security or privacy protections.
Lopp pointed out that most victims in these cases are regular individuals. Further, incidents like this are rare concerns unless one is a prominent figure.
“But you know, what I see in the space, is even a lot of high profile figures, I would say, do not have the level of security and privacy that they should to be commensurate with their risk profile,” Lopp said.
The kidnapping happened on the same day Wonderfi released its Q3 earnings. The earnings demonstrated a 153 per cent increase compared to its Q3 from the previous year.
WonderFi is backed by prominent businessman and television personality Kevin O’Leary. It calls itself Canada’s largest regulated crypto trading platform and possesses over CAD$1.28 billion in assets. Skurka joined WonderFi in 2022 following its acquisition of his cryptocurrency trading platform, Bitbuy Technologies Inc. He became WonderFi’s president and CEO several months later.
Kidnappings involving cryptocurrency are not rare, with previous incidents occurring in Toronto. In late 2022, investor Aiden Pleterski, who dubbed himself the “Crypto King,” was allegedly kidnapped by four men, tortured, and transported to various locations around the city. Pleterski, later charged with fraud, had collected CAD$41.5 million from investors to fund cryptocurrency investments. He had also allocated less than 2 per cent to those ventures, spending millions on exotic cars, private jets, and extravagant vacations.
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joseph@mugglehead.com
taylor cook
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