Physical attacks on cryptocurrency holders surged 75% in 2025 with confirmed losses exceeding US$40.9 million (AU$62 million), according to blockchain security firm CertiK.
A Los Angeles jury on March 2 convicted former LAPD officer Eric Halem of kidnapping for ransom and home invasion robbery after prosecutors said he led an armed crew that stole US$350,000 (AU$500K) in Bitcoin (BTC) from a 17-year-old’s 18th-floor Koreatown apartment.
Prosecutors said Eric Halem, 38, and others dressed in police-style gear, entered an 18th-floor Koreatown apartment in the early hours of Dec. 28, 2024, and used LAPD-issued handcuffs to restrain the victim’s girlfriend.
They then forced the victim, identified in court as Daniel, to hand over a hard drive holding Bitcoin private keys, and took cash and jewellery before leaving.
Physical Crypto Attacks On The Rise
The jury returned guilty verdicts on kidnapping for ransom and home invasion robbery after less than a day of deliberations. The case relied heavily on GPS location records tied to vehicles connected to Halem’s luxury car rental business and messages prosecutors said showed him tracking police radio traffic after the theft.
On the stand, Daniel said the group threatened him with a gun. During cross-examination, he admitted he had obtained the Bitcoin through fraud, which prosecutors argued did not reduce the seriousness of the robbery.
Halem did not testify and the defense called no witnesses, while his lawyer argued investigators cherry-picked messages and failed to properly verify Daniel’s version of events.
Halem left the LAPD in 2022 and was serving as a reserve officer at the time, according to prosecutors. He was also under investigation over an alleged staged Bentley crash for insurance fraud when he was arrested in the Bitcoin case.
Sentencing is set for March 31, and he faces up to life in state prison.
The conviction comes as physical coercion cases targeting crypto holders rise. CertiK said confirmed “wrench attacks” climbed 75% in 2025, with losses above US$40.9 million (AU$58 million).
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