Fear and anger in France's crypto community after spate of kidnappings

Highlights:

• France shocked by string of crypto-related kidnappings
• Crypto bosses step up security measures
• French interior minister pledges security support

After watching frightening images of a prominent French crypto boss' daughter being attacked on a Paris street during a botched kidnapping, crypto executive Alexandre Aimonino finds solace in the changes he has made to his daily routine.

To stay safe, the 23-year-old co-founder of a crypto compliance software company avoids public transport, skips industry get-togethers and varies his drive home.

French crypto bosses have reacted with fear and anger after a series of violent kidnappings. While some have stepped up security and are considering bodyguards, others are calling for the right to bear arms, a tougher crackdown on crime plus deregulation to keep the crypto paper trail more anonymous.

On Tuesday, a masked gang tried to abduct the daughter of Pierre Noizat, the CEO of the French crypto firm Paymium, from a street in Paris in broad daylight.

It was at least the third such attack in recent months.

In January, the co-founder of French crypto company Ledger and his wife were kidnapped, while in May the father of a crypto company head was snatched. All were rescued but both men lost a finger.

A ransom in cryptocurrency was paid during the kidnapping of the Ledger co-founder, but quickly recouped by investigators.

Details are murky about the gangs behind the attacks, though authorities have said 10 people were questioned after the Ledger attack and seven people were arrested following the first kidnapping in May, with two released for having no connection.

The Paris prosecutors' office did not respond to detailed questions from Reuters.

The rapid rise in the price of bitcoin and other cryptocurrencies in recent years has created a new group of wealthy investors.

Security experts interviewed by Reuters said criminals could be tempted by investors posting evidence of their new wealth, as well as the perception that crypto is easier to launder than cash.

Cryptocurrency has long been demanded as ransom in hacks and cyberattacks, and regulators around the world are trying to crack down on crypto's use by criminals.

"Crypto transactions are more likely to escape the level of scrutiny applied to traditional banking systems," said Michael Lyons, a lawyer specialising in anti-money laundering at Clifford Chance.

'GRUESOME, BRAZEN'

For some, the attacks are a symptom of France's growing violent crime problem.

Interior Minister Bruno Retailleau met with some crypto bosses on Friday, offering "full mobilisation of public authorities" to prioritise access to emergency police services and offer security checks of homes.

One of those present, another Ledger co-founder Eric Larcheveque, said the attacks could cause people in crypto to leave France and asked for more legal protection for those acting in self-defence including the right to carry guns.

Noizat's company Paymium suggested deregulation could provide founders with more security.

In a statement on Wednesday, Paymium criticized European regulations like the international "travel rule" which requires data to be collected about the source and recipient of crypto transfers.

Some crypto bosses are taking measures into their own hands.

Thomas Rossi, who runs bodyguard company Wagram in Paris, said he had many new requests after Tuesday's attack.

Sofiane Aboubeker, CEO of French security company ARECIA, also said he had seen an increase in requests for protection.

Ben Davis, who runs an insurance brokerage in the UK for crypto clients, said that while France was facing a particular wave of attacks, there had also previously been incidents in the United States, elsewhere in Europe, and around Asia.

"Two years ago, kidnap and ransom wasn't really a big problem. No one really wanted to talk about it. Now 100% of our clients are talking about it," he said.

Davis, also a crypto investor, said he has taken steps to increase his own security, but declined to give details: "These attacks are again becoming more gruesome, more brazen."