Kidnappings and Sequestrations: Are Stolen Cryptos Recoverable?

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23 Sep 2026Mattis Meichler

A Wave of Aggressions Changing Scale

Physical assaults against cryptocurrency holders led to the theft of $58 million worldwide in 2025, a record. By mid-2026, over $30 million had already been stolen. These estimates, published by Chainalysis, rise even further when including extortion attempts, demanded ransoms, blocked transfers, and subsequently frozen or recovered funds. This amounts to approximately $180 million in 2025 and $107 million in the first half of the year.

🔍️ To delve deeper - List of kidnappings and assaults related to cryptocurrencies in France

France has become one of the main hotspots for this crime. By the end of June, Interior Minister Laurent Nuñez reported 77 cases of sequestration, kidnapping, extortion, or attempts since the beginning of the year, compared to 45 for all of 2025.

For Sébastien Martin, co-founder and president of RAID Square, this particular exposure is explained notably by the combination of a developed crypto ecosystem and numerous data leaks. << There are about 6 million French people who hold cryptos, which is nearly 10% of the population >>, he recalls.

In addition, several highly visible French personalities in the sector and << a phenomenal depth of data >> from personal information leaks, such as the recent one affecting the DGFIP, contribute to this situation.

This data allows criminals to gradually link an identity, a physical address, and sometimes a wealth to crypto activity.

Criminals will use all publicly available information from leaks to try to trace back to a person behind this address. The goal may then be to apprehend them physically to get hold of a portion of their gains. Sébastien Martin, co-founder and president of RAID Square.

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Why Do Criminals Target Crypto?

The choice of cryptocurrencies for ransoms may seem paradoxical. Transactions made on the blockchain remain visible and can be tracked. But for kidnappers, they also present certain advantages, notably speed and the absence of intermediaries when the victim directly controls their funds.

The blockchain allows for instantaneous transactions. And there is no intermediary verifying the significance of the amounts (...) If you send $3 million via the bank, it will be a bit more complicated to withdraw them. Sébastien Martin, co-founder and president of RAID Square.

Moreover, funds can transit through a platform located in a non-cooperative jurisdiction, making any attempt at seizure extremely complex.

Tracing the Flows, the First Step Towards Seizure

Once cryptocurrencies are transferred, they are not necessarily lost. RAID Square has specialized in investigation. The goal is to trace the flows and identify the platforms and wallet addresses to determine which intermediaries the funds have been sent to.

💡 How to secure your digital and financial environment?

This information can then help investigators and magistrates know which platform to address a requisition to. << This saves them time. It directly guides them to the levers of action >>, summarizes Sébastien Martin. However, a private company cannot seize the funds itself, as this decision falls under judicial authority.

The chances of recovery increase notably when cryptocurrencies arrive on a centralized platform. This platform can then, within the framework of a judicial procedure, freeze the assets and provide information about the concerned account.

Conversely, more experienced criminals can multiply transfers, change blockchains via bridges, or use decentralized platforms and multiple intermediaries to complicate tracking.

In France, Seizures Still Insufficient

Sébastien Martin believes that France's seizure capacity remains too limited today. << We are a bit, so to speak, lagging behind on crypto seizures. We have a seizure rate that is still relatively low >>, he judges. Data from AGRASC, the Agency for the Management and Recovery of Seized and Confiscated Assets, shows a progression: €16.2 million in crypto-assets were seized in 83 new cases in 2025, compared to €4.9 million in 70 cases in 2024.

The problem does not stem from a lack of skills among specialized magistrates, but rather from a lack of resources. << We have magistrates who are specialized in cybersecurity, who are very knowledgeable and well surrounded by experts >>, he emphasizes. << But we do not have the necessary depth to support the multiplication of cases related to cryptocurrencies. >>

Because identifying an address or account is not enough. It is then necessary to act quickly, obtain the necessary requisitions, and benefit from the cooperation of the platform or the concerned country.

Beware of Fake Recovery Services

The possibility of recovering stolen cryptocurrencies also fuels another form of scam: fake recovery.

Some companies promise victims to recover their funds directly for a fee. << We have many French people who turn to scammers who sell them anything. And in fact, it's all hot air >>, warns Sébastien Martin.

A specialized company can track transactions, document their path, and identify platforms or wallets. However, it cannot seize a wallet or compel an intermediary to return funds.

After a kidnapping or extortion, recovery remains possible, but it depends on several factors: the speed of reporting, the path taken by the funds, the intermediaries used, and international judicial cooperation.
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Sources: Interview conducted by Cryptoast with Sébastien Martin, Chainalysis

Mattis Meichler364 articles
Journalist passionate about Blockchain, the Web3 ecosystem, and Digital Art, I chronicle the evolution of these emerging sectors.