Opt out or contact us anytime Many big virtual currency holders privately say that they will no longer travel to Russia, Turkey or other countries where they assume that attacks may be easier to pull off because of organized crime. But armed attackers have also hit a Canadian Bitcoin exchange in Ottawa, the Ether investor in New York City and a prominent virtual currency trader living near Oxford , England.
Advertisement Continue reading the main story In a number of cases, the assailants have been caught — and forced to return money — because of video footage. In other cases, the criminals are still at large. The unsolved crimes have sown fear among the ranks of the so-called crypto rich, which have grown considerably over the past year.
Photo Bitcoin is the world’s most popular virtual currency. Such currencies are not tied to a bank or government and allow users to transfer money anonymously. Credit Kin Cheung/Associated Press At a conference for about 170 leaders in the virtual currency industry this month, there was a panel discussion about how to deal with the threat of robbery, extortion and kidnappings in which the criminals seek Bitcoin or other virtual currencies.
Organizers of the conference, known as the Satoshi Roundtable and held near Cancun, Mexico, brought in a security force and instituted significant privacy measures for guests to protect them from criminals while they were in attendance. During the group discussion at the conference, attendees talked about having a “duress wallet” at home that can be handed over to throw an assailant off the trail of a bigger fortune, as well as several other security measures that can be used to deal with the threat.
Most of the crypto rich are loath to speak publicly about the risk of physical attacks, for fear of making themselves targets. But Jameson Lopp, a longtime Bitcoin engineer and virtual currency holder, said the community should be proactive in confronting the threat, to let criminals know that people are taking steps to protect themselves.
Last summer, someone called a SWAT team to Mr. Lopp’s house to harass him. Since then, Mr. Lopp has installed closed-circuit cameras around his property and posted photos on Twitter of the automatic weapon he has at home.
Bitcoin security pro tip: protect your software with hardware. pic.twitter.com/R4KeRGRcTP — Jameson Lopp (@lopp) Oct.
26, 2017 In a more technical defensive measure, Mr. Lopp has long kept his virtual currency in so-called multisignature wallets created by the company he works for, BitGo. These wallets require multiple people to sign off on a transaction before the money can move.
Advertisement Continue reading the main story Mr.
Lopp will go even further later this year when he, his girlfriend and his dog move to a new home. He plans to “go dark” — not providing the address to anyone and using a post office box for deliveries. But he said even that will not fully banish his concerns. “If you are rich and you own real estate, or stocks or a sports team, somebody can’t mug you and take your sports team away,” he said.
“Having liquid crypto assets makes you much more attractive for that type of criminal attack.” Mr.
Levin said programmers are working to develop methods of signing virtual currency transactions that can quietly alert the authorities that a transaction is being made under duress — something like the hidden button under the bank teller’s desk. But he said the most obvious way to thwart attackers is with wallets that require multiple signatures, and with less public discussion about owning virtual currencies.
Mr. Lopp said it is important to publicize the many ways in which virtual currency holders can fend off assailants so that criminals reconsider the likelihood of a successful attack. “We’re in the very early days of this becoming a problem,” Mr. Lopp said. “The attackers are still trying to figure out what the risk-reward really is.”
Follow Nathaniel Popper on Twitter: @nathanielpopper.
Poypiti Amatatham contributed reporting in Bangkok, and Doris Burke provided research in New York. A version of this article appears in print on February 19, 2018, on Page B1 of the New York edition with the headline: Your Bitcoin or Your Life.
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