WonderFi CEO Skurka freed after paying 1M dollars in ransom

The CEO of Toronto-based cryptocurrency company WonderFi Technologies was abducted and compelled to pay a $1 million ransom for his release, according to CBC's report on Thursday, November 7.

WonderFi is one of the most well-known publicly traded cryptocurrency and largest regulated crypto trading companies in Canada. It is backed by Shark Tank co-host and multimillionaire Kevin O'Leary. 

WonderFi CEO kidnapped

On Nov. 6, Dean Skurka was "forced" into a car during "rush hour" in downtown Toronto. A person familiar with the investigation told CBC that he sent $1 million electronically to get his release. According to reports, Skurka confirmed by email the November 6 incident and said that the company data and funds were not affected and that he is safe.

Police have not disclosed any new information and say the investigation is still ongoing, according to CBC. WonderFi and Skurka have not made any public remarks regarding the incident as of the time of publication.

WonderFi owns cryptocurrency companies Coinsquare, SmartPay, Tetra Trust, and Bitbuy, where Skurka was president from January 2018 to July 2023. In a statement on October 30, WonderFi disclosed that it has $1.35 billion in assets under custody. The company is listed on the Toronto Stock Exchange and has a market capitalization of $75 million, according to data from Google Finance.

Growing trend of abductions of crypto executives and influencers

Skurka's incident contributes to a worrying pattern of kidnappings of influencers and crypto executives, more often with the intention of stealing large sums of money.

The first well-known abduction for crypto-ransom happened on January 20, 2015, when a Canadian national was kidnapped from San José, Costa Rica, and demanded to pay $500,000 in Bitcoin. In March 2023, Peter Vuong was abducted from the bed he shared with influencer girlfriend Angel Bowyer in Sydney, Australia. Bowyer's crypto trader relative, Tran Dinh, was then demanded to pay a $5 million ransom by the alleged kidnappers.

A 29-year-old foreign national Bitcoiner was allegedly abducted and killed in Kyiv, Ukraine, in July, and four suspects were taken into custody for allegedly stealing $170,000 worth of Bitcoin. A few weeks later in August, six Malaysians were also accused of kidnapping a Chinese national and extorting $1 million worth of Tether, a stablecoin. 

Why Kidnappers prefer cryptocurrency for ransom?

This increasing threat is caused by a number of factors. Because of their anonymity and decentralized structure, cryptocurrencies have gained popularity among criminals. Crypto is an attractive medium for kidnappers and extortionists because ransom demands are more difficult to track down than conventional methods. 

As cryptocurrencies continue to gain popularity around the world, influencers and investors should exercise caution. By keeping a low profile, avoiding the overt display of wealth, and implementing strict security measures, you can deter potential threats.

Disclaimer

This information should not be considered financial advice by any means. Please do your own research before making any investment decisions. The views in the articles are personal opinions only. Whale Insider is not responsible for any financial losses incurred.