Summary
- Former police officials in Ukraine are accused of abducting crypto investors and extorting around $2.2 million through threats, violence, and fraudulent debt claims.
- Prosecutors allege the group targeted a minimum of four individuals, employing law enforcement tactics, official vehicles, and impersonating police to execute their crimes.
- This incident is part of a growing trend of "wrench attacks" globally, where physical coercion is used to seize digital assets.
According to prosecutors, a group of former police colonels in Ukraine utilized their law enforcement skills for criminal purposes, reportedly kidnapping crypto entrepreneurs and extorting over $2.2 million in a series of "wrench attacks."
The Kyiv Regional Prosecutor's Office announced on Thursday that it has concluded its preliminary investigation into a group involving four ex-police officers and a previously convicted civilian, who have not yet faced formal charges related to the incidents.
As per the prosecutors, the suspects were previously active members of the Main Police Department in Crimea and Sevastopol — areas under Russian occupation since 2014 — as well as a unit based in Kyiv, until their arrest led to their discharge.
Two of the colonels spearheaded the operation by enlisting fellow officers and a civilian with a criminal history.
The group is accused of forming an armed gang involved in kidnapping, unlawful detention, robbery, extortion, and illegal drug possession.
Prosecutors have identified at least four victims who were allegedly tracked, abducted, held at gunpoint, and coerced into handing over money and signing documents for fictitious debts.
The gang reportedly leveraged their official connections and resources to conduct their operations in a well-organized manner, utilizing encrypted communication, official vehicles, and presenting themselves as law enforcement agents while committing the crimes.
In a specific case documented, a victim in Kyiv was reportedly kidnapped at gunpoint and forced to create a fraudulent "debt" of $5 million before being relocated to several undisclosed places.
The gang's criminal activities were halted in November 2025, and all involved were dismissed from police service, with the case files sent to court.
Threats to Crypto Entrepreneurs
Law enforcement credentials have been previously exploited in crypto-related "wrench attacks."
In March, a jury in Los Angeles found former LAPD officer Eric Halem guilty of kidnapping and robbery after he and accomplices impersonated police to gain entry into a Koreatown apartment, where they handcuffed two individuals and transferred $350,000 in Bitcoin from a teenager's account.
That same month, a home invasion in Versailles involved attackers posing as police who forced a couple in their late 50s to transfer about $1 million in Bitcoin at knifepoint.
According to cybercrime consultant David Sehyeon Baek, cases where authority is misused to intimidate crypto holders are still rare. He stated to Decrypt, "While the victims' crypto may have been secure, it became irrelevant once violence and coercion were introduced."
Baek noted that the unique nature of crypto poses a distinct security challenge, as assets can be swiftly transferred across borders under duress. He emphasized that when local security is compromised, entrepreneurs must prioritize personal safety, jurisdictional risks, legal support, and operational confidentiality alongside wallet security.
He highlighted that this case serves as a warning that crypto entrepreneurs can be targeted not just by hackers but by individuals capable of exploiting their official power, suggesting that in high-corruption contexts, extortion may manifest as a "twisted misuse of state authority" rather than typical street crime.
Conditions of conflict, corruption, and institutional strain can facilitate coercive schemes that are more challenging to identify, providing criminals with opportunities to operate under what Baek referred to as "confusion, fear, and false legal pressure."
In 2025, there were 72 verified incidents of “wrench attacks" globally, marking a 75% increase from the previous year, with confirmed losses surpassing $40.9 million, as reported by blockchain security company CertiK.
In France, authorities charged 88 individuals, including over 10 minors, in connection with investigations into violent crypto kidnappings in late April, following 135 recorded incidents linked to crypto since 2023.
The latest high-profile incident occurred earlier this month when six suspects, two of whom were teenagers, allegedly attempted to abduct Sébastien Borget's wife, the co-founder of Sandbox, from their home in France.