Crypto execs are becoming direct targets for criminals these days, with a growing rate of related crimes.
These robbers are using tactics like surveillance and forced transfers to rob victims.
Nick Drakon, the former CEO of Revelo Intel, was the latest victim of this trend.
The robbers threatened his wife and son, stealing his personal savings and the company’s operational capital amid suspicions of insider involvement.
It is important to take precautions to protect yourself and your crypto holdings.
In a world where exploiting crypto companies used to be restricted to smart contract hacks and phishing scams, there is now a disturbing trend of attackers directly targetting crypto execs and forcibly extorting thousands and even millions worth of crypto.
In July, Police in Kyiv, Ukraine and the country’s special police unit arrested four suspects for allegedly kidnapping and murdering a 29-year-old Bitcoiner after stealing $170,000 worth of BTC.
Only last week, on 3 September, Scottish prosecutors seized 23.5 Bitcoin from a 2020 robbery from three men who broke into a house with a machete and robbed a man of his crypto, according to the BBC.
This week, however, Nick Drakon, the former CEO of Revelo Intel, was forced to resign after a traumatic incident in which he was robbed at gunpoint.
Here are the circumstances that led to Drakon's loss of personal, company, and investor funds.
Drakon reveals that he was targeted by a "highly sophisticated group."
According to the Revelo Intel CEO, this group of assailants appeared to have been surveilling him for some time and were especially interested in his crypto holdings.
Interestingly, though, they not only knew the precise deposit addresses of the crypto he managed, but they also forced him to log into his accounts one by one and transfer substantial amounts of money to them.
The latest crypto robbery
The thieves stole his personal savings, Revelo Intel's operational capital, and the funds of Revelo Ventures (the company's investment arm).
Drakon also mentioned that the attackers, whoever they were, threatened his wife and their eight-month-old son if he failed to comply.
Interestingly, the CEO also mentioned that there may be more to the robbery.
While he remained mostly tight-lipped, Drakon said, "There is some evidence to suggest that someone […] is either part of the group or passing information onto them.”
In essence, while “Disclosing further details […] will hinder the efforts of the investigation,” Drakon believes that insiders within Revelo Ventures may have played a role in the whole thing.
In the tweet, Drakon mentioned that he is stepping down from his role as CEO of the company, with the former chief operating officer, Vu Benson, set to take over.
Furthermore, to recover the lost funds, Drakon has forfeited his interest in Revelo Intel and pledged that 30% of the company's future profits would be directed to members of Revelo Ventures.
He admitted to making "severe mistakes" that made him a target, and he expressed regret for the losses that investors now have to deal with.
Overall, this incident adds to a growing list of high-profile crypto robberies dating back to 2020.
In June this year, the Department of Justice (DOJ) in the US highlighted a series of violent home invasions and even arrested the leader of a robbery crew, 24-year-old Remy St Felix, for his role in the scheme.
The DOJ reported that St Felix and his crew targeted victims across the US in a series of home invasions, kidnappings, and robberies in order to steal crypto.
According to renowned Bitcoin advocate Jameson Lopp, there are a few ways to be safe, especially as someone who holds crypto.
Many criminals like to identify victims through online activities, social media, crypto conferences, and meetups.
Some of the ways to stay off the radar include:
Avoid peer-to-peer trades unless dealing with trusted individuals.
Never discuss crypto in public spaces.
Never hold the key(s) to your Bitcoin/crypto wallet in person.
Avoid flaunting wealth on social media.
Never wear crypto-branded clothing, try to "blend in," and never stand out as a "wealthy Bitcoin adopter."
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information but will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.