SOUTHFIELD, Mich. (FOX 2) – As Bitcoin reaches new heights in terms of value, there are more and more desperate attempts by criminals to get their hands on it.

The backstory:

Two men were arrested in New York, accused of kidnapping and torturing Bitcoin tycoons, all in an attempt to gain access to the digital currency. Since there are no physical coins in Bitcoin, they need access to something called a ‘seed phrase.’ 

Many may think of it as a secret password that unlocks the safe.

A 28-year-old Bitcoin tycoon says he escaped a torture chamber in New York City after being shocked with electric wires, drugged, and threatened with a chainsaw, among other things.

What they’re saying:

Meanwhile, local cybersecurity expert David Derigiotis says it has to do with timing.

“Bitcoin, as well as all cryptocurrencies, have hit all-time highs,” Derigiotis  said. So the value is through the roof right now, so it’s a target.”

Unfortunately, the New York City Bitcoin torture case isn’t an isolated one.

“You have another case where somebody was acting like an Uber driver in London that stole over $120,000 from someone visiting from the States,” said Derigiotis. 

He later says there was another in Paris where more than 20 people were arrested, and it was more than torture; they were kidnapping and looking to extort people for their cryptocurrency.

Dig deeper:

Often, we hear about scammers carrying out their crimes far away over the internet.

These have been physical attacks from person to person. 

Derigiotis says it has to do with the way crypto is stored.

“You have digital wallets that can be connected to the internet. Those are more accessible and more convenient,” he said. “Then you have air-gapped or you have hardware wallets that are not connected online.”

What connects both is a seed phrase in which Derigiotis says is a string of words that have to be given in a particular order that serves as the passkey to the address, whether it’s connected to the internet or not.

There are ways to invest safely, even ways to make a lot of money and not be a target.

“Security overall is all about layers. Not being overly vocal on social media. Not sharing your personal information, making sure that the seed phrase is well protected,” he said.

What’s next:

Overall, FOX 2 cybersecurity experts say education is the key here. 

He suggests using new tech to learn about new currencies. 

Ask AI services like ChatGPT to tell you about it and go from there. That way, you have the latest information available.