Crypto
Cryptocurrency kidnappings: alleged mastermind arrested in Morocco
In recent months, France has been shaken by a series of kidnappings and attempted abductions involving prominent entrepreneurs in the cryptocurrency sector.
A significant breakthrough came with the arrest, in Morocco, of a key suspect. This episode marks a critical point in the fight against organized crime in the world of cryptocurrencies.
The context: a series of disturbing cryptocurrency kidnappings in France
The Moroccan authorities have announced the arrest of Badiss Mohammed Bajjou, a 24-year-old Franco-Moroccan considered the mastermind behind a series of kidnappings targeting entrepreneurs active in the cryptocurrency sector in France.
The arrest took place in Tangier, a city in the north of Morocco, thanks to a coordinated action by the country’s General Directorate for National Security.
Bajjou was wanted with a red notice from Interpol for serious charges including arrest, kidnapping, illegal or arbitrary detention of hostages.
Its identification and capture are an important step forward for French and international justice in response to the growing wave of violence against actors in the bull and bear cryptocurrency sector.
France has experienced an escalation of kidnappings related to cryptocurrency entrepreneurs, causing alarm at the national level.
These events have highlighted the risks associated with the rapid expansion of the sector, drawing unwanted attention to prominent figures in the field.
Among the most significant cases that have emerged is the kidnapping in January of David Balland and his partner, which occurred under terrible circumstances.
Balland is the co-founder of one of the most well-known companies in the sector, valued at over a billion dollars, which deals with digital assets like Ledger. During the kidnapping, one of the captors even severed a finger of Balland to increase the pressure on the ransom.
The problem has provoked a strong reaction from industry operators.
A well-known entrepreneur described the situation as a true “messicanizzazione” of security in France, a reference to the growing perception of insecurity and violence similar to that observable in other more challenging global contexts.
This expression summarizes the collective anxiety of cryptocurrency operators, highlighting the need for immediate and structural interventions against these criminal episodes.
The involvement of 25 people in the investigations
The French law enforcement agencies have intensified the investigations, leading to the indictment of 25 people, including six minors. These individuals are suspected of having participated in both the completed kidnappings and the failed attempts at abduction.
This extensive operation demonstrates how deeply rooted and organized the phenomenon is. However, the arrest of Bajjou represents a strong signal of the local and international investigative capability in curbing these bull criminal groups.
The wave of violence has created great embarrassment for the French government, which now finds itself having to effectively protect a category of citizens particularly vulnerable due to their economic activities in the digital world.
In response, the French Minister of the Interior, Bruno Retailleau, called an emergency meeting with the main players in the cryptocurrency sector.
In this meeting, concrete measures and plans were announced to increase the safety of entrepreneurs and their families.
Even though the specific details of the measures have not yet been fully formalized, the government’s intent to enhance both physical and digital protection for those operating in this field is clear.
The objective is to mitigate criminal risk and restore confidence in a sector considered strategic for economic innovation.
The economic and symbolic weight of cryptocurrencies in the vicenda
This series of kidnappings highlights the growing value of digital financial assets like bitcoin and other cryptocurrencies, which now represent personal fortunes that frequently exceed millions of euros.
The rapid growth and appreciation of companies like Ledger demonstrates how the economy linked to cryptocurrencies has reached a dimension where security becomes a fundamental issue. The direct involvement of high-profile entrepreneurs, targets of kidnappings, highlights the direct correlation between digital wealth and criminal risks.
The arrest of Bajjou in Morocco constitutes an encouraging signal in the fight against kidnappings related to the world of cryptocurrencies, but it also indicates the complexity of the problem, which extends beyond national borders.
In the future, it will be essential for the French authorities, together with international ones, to keep their guard up through coordinated operations and more effective support for the victims.
Furthermore, the cryptocurrency sector will need to invest more in prevention and security, so that this new “form of wealth” does not become an easy target for crime.
Ultimately, this event serves as a warning for all parties involved, inviting a constant dialogue between institutions, entrepreneurs, and the digital community.
Only in this way will it be possible to transform the challenge of security into an opportunity for sustainable and serene growth for the cryptocurrency ecosystem.
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Crypto mogul Do Kwon sentenced to 15 years in prison over $40B ‘epic fraud’
Do Kwon, the South Korean cryptocurrency entrepreneur behind two digital currencies that lost an estimated $40 billion in 2022, was sentenced on Thursday to 15 years in prison for for what a judge called an “epic fraud.”
U.S. District Judge Paul A. Engelmayer, who handed down the sentence, sharply rebuked Kwon for repeatedly lying to everyday investors who trusted him with their life savings.
“This was a fraud on an epic, generational scale. In the history of federal prosecutions, there are few frauds that have caused as much harm as you have, Mr. Kwon,” Engelmayer said during a hearing in Manhattan federal court.
Kwon, 34, who co-founded Singapore-based Terraform Labs and developed the TerraUSD and Luna currencies, previously pleaded guilty and admitted to misleading investors about a coin that was supposed to maintain a steady price during periods of crypto market volatility.
He is one of several cryptocurrency moguls to face federal charges after a slump in digital token prices in 2022 prompted the collapse of a number of companies.
Dressed in yellow prison garb, Kwon addressed the court and apologized to his victims, including the hundreds who submitted letters to the court describing the harm they had suffered.
“All of their stories were harrowing and reminded me again of the great losses that I’ve caused. I want to tell these victims that I am sorry,” Kwon said.
Ayyildiz Attila, one of the hundreds of victims who submitted letters to the court, said he lost between $400,000 and $500,000 in the collapse.
“My savings, my future, and the results of years of sacrifice disappeared. I struggled to keep up with payments and responsibilities, and everything I had worked forwas erased,” Attila said.
Kwon’s lawyer Sean Hecker said in an email after the sentencing that Kwon spoke from the heart, expressed genuine remorse and will continue his efforts to make amends.
US Attorney Jay Clayton in Manhattan said in a statement following the hearing that Kwon devised elaborate schemes to inflate the value of his cryptocurrencies and fled accountability when his crimes caught up to him.
Prosecutors had asked for a sentence of at least 12 years in prison, saying the crash of Kwon’s Terra cryptocurrency caused billions of dollars in losses and triggered a cascade of crises in the crypto market.
Kwon’s lawyers had asked that he be sentenced to no more than five years so he can return to South Korea to face criminal charges.
Prosecutors charged Kwon in January with nine criminal counts for securities fraud, wire fraud, commodities fraud and money laundering conspiracy.
Kwon was accused of misleading investors in 2021 about TerraUSD, a so-called stablecoin designed to maintain a value of $1. Prosecutors alleged that when TerraUSD slipped below its $1 peg in May 2021, Kwon told investors a computer algorithm known as “Terra Protocol” had restored the coin’s value.
Instead, Kwon arranged for a high-frequency trading firm to secretly buy millions of dollars of the token to artificially prop up its price, according to charging documents.
Kwon pleaded guilty in August to two counts, conspiracy to defraud and wire fraud, and apologized in court for his conduct.
“I made false and misleading statements about why it regained its peg by failing to disclose a trading firm’s role in restoring that peg,” Kwon said at the time. “What I did was wrong.”
Kwon agreed in 2024 to pay $80 million as a civil fine and be banned from crypto transactions as part of a $4.55 billion settlement he and Terraform reached with the Securities and Exchange Commission.
He also faces charges in South Korea. As part of his plea deal, prosecutors will not oppose Kwon’s potential application to be transferred abroad after serving half his US sentence.
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