Crypto
Paris kidnap bid highlights crypto data security risks
New regulations threaten the security of the personal data of cryptocurrency users and may expose them to “physical danger,” the platform at the center of last week’s Paris kidnapping attempt has claimed.
“A ticking time bomb,” said Alexandre Stachtchenko, director of strategy at French platform Paymium, referring to the way information must now be collected during cryptocurrency transfers under EU rules.
He did not directly link this to a kidnapping attempt on Tuesday which, according to a police source, targeted the daughter and grandson of Paymium’s chief executive.
“If there is a leak of one of these databases from which I can find out who has money and where they live, then the next day it is on the dark web, and the day after there is someone outside your home,” Stachtchenko said.
Data theft is commonplace. On Thursday, the leading cryptocurrency exchange in the United States, Coinbase, said criminals had bribed and duped their way into stealing digital assets from its users, then tried to blackmail the exchange to keep the crime quiet.
Instead of paying up, Coinbase informed US regulators about the theft and made plans to spend between $180 million and $400 million to reimburse victims and handle the situation.
Name and address
Following the kidnapping attempt, Paymium issued a statement urging authorities to immediately reinforce the protection of companies within the sector, after other similar incidents this year.
Founded in 2011 and presenting itself as a European pioneer of bitcoin trading, Paymium also cited “the highly dangerous aspects of certain financial regulations, either recently adopted or in the making.”
It added, “With the unprecedented organization of massive and sometimes disproportionate collection of personal data, public authorities contribute to putting the physical safety of millions of cryptocurrency holders in France, and more widely in Europe, at risk.”
In its sights are rules which came into force at the end of 2024 and which extended the Travel Rule in place for traditional finance transfers to include crypto assets.
The rules now require platforms to gather details about the beneficiary and, in return, transmit certain information about the customer to the receiving institution, including their name and postal address.
Also to be disclosed is the “address” of a customer’s cryptocurrency wallet, which shows details of their account and transactions, said Stachtchenko.
Such sensitive data is sometimes exchanged and stored insecurely by certain players.
Regulatory changes to tighten the rules on the crypto sector aim to “prevent the financial system from being used for corruption, money laundering, drug trafficking” among other criminal activities, said Sarah Compani, a lawyer specializing in digital assets.
‘Nouveau riche’
Data collection is carried out by parties including banks, insurance companies and crypto-service providers, which are “supervised” and subject to heavy “security obligations, particularly IT and cybersecurity,” said William O’Rorke, a lawyer at cryptocurrency firm ORWL.
In 2027, European anti-money laundering regulations will restrict the use of wallets and cryptocurrencies that allow the holders to remain anonymous.
It follows a French law adopted last month to fight narcotrafficking, which targets anonymization devices such as the cryptocurrency “mixers” used to render funds untraceable.
There are many “legitimate interests” in having such tools however, said cybersecurity expert Renaud Lifchitz.
He noted that they are sometimes used by journalists, or by activists opposed to an authoritarian regime which controls the traditional banking system.
The debate is more “political” than “security-related,” argued O’Rorke.
The recent kidnappings and attempted kidnappings can be explained above all by a “somewhat nouveau riche” and “ill-prepared” cryptocurrency sector, he said.
Since 2014, software developer Jameson Lopp has recorded 219 physical attacks targeting cryptocurrency users.
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Crypto
Capitol Connections: Rep. Scot Matayoshi on banning cryptocurrency kiosks, cell phones in schools
This post is part of our Capitol Connections series, where Annalisa Burgos sits down with state lawmakers to discuss their priorities for the legislative session and issues affecting their districts. Watch the full interview above and click here for more Capitol Connections.
HONOLULU (HawaiiNewsNow) – State Representative Scot Matayoshi is proposing legislation to combat fraud and scams and restrict cryptocurrency ATM purchases after hearing multiple accounts of kupuna being victimized.
Matayoshi, D, who represents Kaneohe and Kailua and chairs the House Consumer Protection and Commerce Committee, said a relative told him about a friend who was defrauded out of hundreds of thousands of dollars through an online scam.
“I think every single person I’ve talked to has known a cousin, an auntie, a friend of an auntie or a friend of a mom or whatnot that has been defrauded or at least has experienced someone trying to defraud them of money,” Matayoshi said.
Bank teller freeze authority
One bill would allow bank tellers to freeze transactions if they suspect fraud is occurring. Matayoshi said bank tellers serve as the first line of defense because many seniors visit banks in person and have relationships with tellers.
“If the bank teller believes that there’s a fraud, a fraudulent transaction happening, they can put a freeze on it and for a couple of days or however long they need in order for the person to honestly just snap out of it,” Matayoshi said.
He said victims typically realize they’ve been scammed within 24 to 48 hours, but by then the money is already gone and difficult to recover.
Cryptocurrency ATM restrictions
Matayoshi is also introducing legislation to prohibit cryptocurrency purchases through kiosks found inside grocery stores and convenience marts across the state, citing their frequent use in fraudulent transactions targeting seniors.
“These crypto kiosks, in my opinion, are mostly used for fraudulent transactions,” Matayoshi said. “The benefit to them doesn’t outweigh the massive fraud going on with these ATMs.”
The bill would still allow people to withdraw money from crypto ATMs if they already own cryptocurrency and want to convert it to cash.
Store owners have reported seeing seniors at crypto kiosks with cash, talking on phones with someone guiding them through transactions. Matayoshi said scammers often instruct victims to use the machines after claiming their relatives are in danger and need bail money.
Deceptive mailer protections
Another bill targets deceptive mailers that appear to be from mortgage companies or government agencies but are actually third-party services charging excessive fees.
“I’ve been getting a lot of letters that purport to be my mortgage company, that purport to be my car company,” Matayoshi said. The bill would require large disclaimers stating the mailers are not from actual companies and make transactions voidable if proper disclosures aren’t included.
School cell phone ban
Matayoshi is also proposing a school-wide cell phone ban from “bell to bell” that would protect teachers and schools from liability when confiscating devices.
As a former seventh-grade science teacher in Nanakuli, Matayoshi said teachers currently avoid confiscating phones worth hundreds or thousands of dollars due to liability concerns.
“If the cell phone broke, if another kid stole it out of my desk, if it got lost, then I would be held responsible for it,” Matayoshi said.
The bill includes exceptions for emergencies and educational use, and requires parents to pick up confiscated phones. Matayoshi said removing phones from classrooms could reduce bullying and allow students to interact without fear of being recorded.
Budget concerns
Matayoshi said his measure of success for the legislative session will be ensuring essential services like SNAP benefits and Medicaid are maintained despite tight budget constraints.
“Success for me at the end of session would be making sure that those core essential services are still being taken care of, that the government is still providing for people in need,” Matayoshi said.
Copyright 2026 Hawaii News Now. All rights reserved.
Crypto
French police arrest six over crypto-related magistrate kidnapping
French authorities have arrested six suspects, including a minor, after a magistrate and her mother were held captive last week for around 30 hours in a cryptocurrency ransom plot, prosecutors said on Sunday, February 8.
Four men and one woman were detained, three overnight and two on Sunday morning, Lyon prosecutor Thierry Dran told AFP. He later confirmed a minor had been arrested on Sunday afternoon.
The individuals were taken into custody following the discovery of the 35-year-old magistrate and her 67-year-old mother on Friday morning, found injured in a garage in the southeastern Drôme region. Two of those arrested overnight were detained as they attempted to take a bus to Spain, according to a source close to the case speaking on condition of anonymity.
Authorities continue to actively search for further suspects, a second source close to the case said, adding that the woman in custody is the partner of one of the four male suspects.
During a press conference Friday after the pair’s escape, prosecutor Dran said the magistrate’s partner – who was not home when the two victims were abducted overnight Wednesday to Thursday – has a leading position in a cryptocurrency start-up.
A massive police search involving 160 officers was launched after the magistrate’s partner had received a message and a photo of her from the kidnappers demanding a ransom to be paid in cryptocurrency.
The captors threatened to mutilate the victims if the transfer was not made quickly, Dran told reporters, declining to specify the amount demanded. But the two women managed to free themselves and call for help without any ransom being paid, by banging on the garage door in Bourg-les-Valence.
“Alerted by the noise, a neighbour intervened. He was able to open the door and allow our two victims to escape,” Dran said.
Crypto-linked kidnappings
French authorities have been dealing with a string of kidnappings and extortion attempts targeting the families of wealthy individuals dealing in cryptocurrencies.
In January 2025, kidnappers seized French crypto boss David Balland and his partner. Balland co-founded a crypto firm called Ledger, valued at the time at more than $1 billion.
Balland’s kidnappers cut off his finger and demanded a hefty ransom. He was freed the next day, and his girlfriend was found tied up in the boot of a car outside Paris.
In May, the father of a man who ran a Malta-based cryptocurrency company was kidnapped by four hooded men in Paris. The victim, whose finger was also severed by the kidnappers and for whom a ransom of several million euros was demanded, was released 58 hours later in a raid by the security forces.
Crypto
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