The Chief Executive Officer of the prominent Canadian cryptocurrency firm WonderFi was kidnapped and held hostage on Wednesday after he was taken from downtown Toronto during rush hour.
Dean Skurka, the head of the company, was forced to pay $1 million to be released from captivity and came back home unharmed.
The incident is part of a disturbing trend that seems to be emerging, which involves targeting either affluent crypto investors or top executives within crypto firms to steal large sums of money stored in the form of digital assets.
WonderFi is a high-profile Canadian firm whose shares are traded in the CBOE Exchange of Canada. Its market cap exceeds $100 million. Skurka took over the CEO role permanently in July 2023 after spending nearly a year as interim.
A source familiar with the investigation indicated that Skurka was forced to enter a vehicle while he walking down the street. Their captors quickly demanded that he pay them $1 million electronically. After he agreed, they released him without inflicting any harm.
In an email to CBC, Skurka confirmed that he had been involved in an “incident” on November 6th but stated that he is now safe and that no customer funds or data were impacted. The Toronto Police Service is investigating the kidnapping but has yet to release any further details publicly.
Physical Violence is Becoming a Popular Method to Steal Crypto
A security firm highlighted that physical violence has been used in 171 cases now so far to steal digital assets from the victims. This traumatic experience comes to join other cases like one involving the kidnapping and murder of a 29-year-old in Ukraine who was stolen $170,000 worth of Bitcoin (BTC).
Moreover, a Chinese individual was also targeted by six people in Malaysia who demanded a $1 million ransom paid in USDT to release him from captivity.
As the value of BTC and other digital assets continues to sore – with the former now accumulating gains of 77% so far this year – criminals see an opportunity to make bank by using traditional methods to steal these assets from their rightful owners.
The stakes are even higher when the CEO of a prominent company in the industry is targeted as data and assets may be at risk. In the case of WonderFi, the firm caters to over 1.6 million registered users in Canada and has assets under custody exceeding $1 billion according to its most recent statement.
WonderFi is backed by the well-known Shark Tank co-host and billionaire investor, Kevin O’Leary. It operates several different exchanges and digital asset custody services including Bitbuy, Coinsquare, CoinSmart, and Coinberry.
Prior to joining WonderFi, Skurka served as the President of Bitbuy, one of Canada’s largest cryptocurrency exchanges. He took over the CEO role after WonderFi acquired Bitbuy in 2021 as part of its strategy to consolidate Canada’s fragmented crypto ecosystem.
Crime Rates in the Greater Toronto Area on The Rise
The investigation into Skurka’s kidnapping is being led by the Ontario Provincial Police, who have not released many details about the incident publicly. In their statement to CBC, the police acknowledged that crime rates, particularly gun violence, have been rising in the Greater Toronto Area in recent months.
The Ontario Provincial Police has not yet released any details about the investigation as it is customary in an ongoing proceeding. The agency acknowledged that crime rates, particularly incidents involving some sort of gun violence, have been rising in the Greater Toronto Area lately.
The city has become a notorious hub for crypto companies and is gearing up to host a high-profile industry event next year. This event is a large gathering that welcomes professionals, leaders, and investors. Skurka’s incident may prompt the organizers of the event to strengthen their security measures to make sure attendees are safe from this kind of threat.
Additional Security Measures May Need to be Adopted to Protect Customers’ Assets
As the industry waits for further details about the incidents and possibly to capture of those who were responsible, Skurka’s ordeal is a reminder that the crypto industry is facing challenges from multiple fronts as cryptocurrencies become more popular and more eagerly adopted than ever by both individuals and institutions.
The investigation will likely continue its course and authorities may be pressured to ramp up security measures in the area as a result of this unfortunate experience.
Also read: Prolific Gang of Crypto Home Invaders Caught & Charged
Addressing the rising tide of crimes involving the theft of crypto assets through physical violence could become a priority for law enforcement agencies now in certain cities where the industry is thriving and there is a growing presence of companies from this sector.
Moreover, ensuring the safety and well-being of people who attend crypto events in the area is also critical if the city of Toronto aims to keep being considered a suitable host for this type of gathering.
Executives at other crypto firms may have taken note of the incident and could opt to strengthen their personal security as both their personal assets and those of the customers their firms serve are at risk if criminals manage to penetrate these systems through these tactics.