French Interior Minister Bruno Retailleau has promised to act swiftly to protect crypto players and their families after a series of violent attacks and kidnappings that have shocked France, prompting calls for deregulation of the sector.
The goal now is clear, Retailleau said on Friday following a meeting with cryptocurrency executives: "To prevent, deter and protect."
He promised to roll out a first wave of security and prevention measures swiftly, after images of the botched kidnapping of a prominent French crypto boss's daughter on a Paris street went viral on Tuesday.
Amateur video showed a masked gang trying to abduct the daughter of Pierre Noizat, the CEO of French crypto firm Paymium, in broad daylight.
In January, the co-founder of French crypto company Ledger and his wife were kidnapped in central France, while in May the father of a crypto company executive was snatched in Paris. While all were rescued, both of the men lost a finger.
Security measures
The new measures include better partnering between law enforcement and crypto firms, giving top executives priority access to emergency services and offering them home security assessments by police experts.
A longer-term plan to improve security standards across the sector is also in the pipeline, Retailleau said.
Crypto professionals will be eligible for special security briefings provided by elite police units. The government also pledged to work closely with crypto entrepreneurs to deploy short-term measures aimed at disrupting organised crime efforts targeting the sector.
Alongside the planned government measures, the Association for the Development of Digital Assets, a major industry group, announced at the meeting it would raise awareness among its members on best practices for personal security.
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‘Target on your back’
While authorities have said 10 people were questioned after the Ledger attack and seven were arrested following the first kidnapping in May, little is known about the gangs behind the attacks and identifying the criminals involved can be difficult.
While the blockchain – the secured database that contains the history of all exchanges made between its users since its creation – keeps an accurate record of transactions, it's also "easier to hide your identity behind a pseudonym," says Jérôme Mathis, professor of economics and finance at Paris-Dauphine University.
"Tracking the loot therefore becomes much more difficult," he told RFI. "Criminals act rationally: they seek maximum gain with minimal risk. That's why cryptocurrencies attract them."
Some French crypto bosses say deregulation could provide executives with more security, by keeping the crypto paper trail more anonymous.
In a statement posted on X (formerly Twitter) on Wednesday, Paymium criticised European regulations such as the international "travel rule" – already in place in traditional financial institutions – which requires data to be collected about the source and recipient of crypto transfers.
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Some executives are taking matters into their own hands, stepping up private security and considering hiring bodyguards.
To stay safe, Alexandre Aimonino, the 23-year-old co-founder of a crypto compliance software company, avoids public transport, skips industry get-togethers and varies his drive home.
"Working in the ecosystem feels like having a target on your back," he told Reuters news agency.
Targeting new wealth
While they are a small part of global financial markets, the rapid rise in the price of bitcoin and other cryptocurrencies in recent years has created a new group of wealthy investors – tempting targets for criminal groups.
"Bitcoin, for example, has experienced spectacular growth. It was worth less than €1,000 in 2017, today it's worth a hundred times more – nearly €100,000 euros – which makes it a highly coveted target for criminals," says Mathis.
Crypto also holds its value and is easier to launder than cash.
"Unlike stolen jewellery, watches or luxury cars, that will have to be sold at discounted prices, there is no markdown on cryptocurrencies," Mathis notes. "Digital assets are transferred from one account to another, allowing you to pocket the direct value of the cryptocurrency."
He added: "Finally, in the case of ransom demands, digital assets are available 24/7. No need to wait to gather the requested funds. Transactions are instantaneous, without bank fees."
Not unique to France
For some, the attacks are a symptom of France's growing problem with violent crime.
"The heart of the matter is ... whether we know how to repress crime in this country," Noizat told BFM television on Friday.
Eric Larcheveque, a Ledger co-founder whose associate David Balland was kidnapped with his partner in late January, has referred to the "Mexicanisation" of France.
Mathis says we "may be getting close to that" given the kidnappings and ransom requests. But while he recognises it's a worrying phenomenon, he insists it is not unique to France. "We've already observed this elsewhere in the Netherlands, Belgium, Spain, the United States, Latin America – Brazil, Mexico, Venezuela – or Africa, like in Nigeria."
He said executives and their families should be vigilant, but not paranoid.
"There may be a kind of myth around cryptocurrencies today. Just as jewellers don't all have diamonds at home, crypto entrepreneurs aren't all millionaires," he noted – although he added: "The richest have sufficient means to protect themselves and ensure their security."
