Key Takeaways:
- This Friday, the 13th, we look at some crypto horror stories from the past.
- From Bitcoin losses to crypto extortions, the list includes terrifying tales.
YEREVAN (CoinChapter.com) — Friday the 13th is upon us again, with all the horror it represents. Depending on where you are reading this from and how superstitious or religious you are, this day may mean something.
Regardless, we thought this was the perfect day to look back at a few crypto horror stories from recent days.
1. QuadrigaCX and its missiong millions
If you are not new to cryptocurrencies and have stayed up to date with the industry, then the name QuadrigaCX should not be new to you. In the world of crypto frauds and Bitcoin (BTC) Ponzi schemes, that name stands out, striking fear in the hearts of wannabe traders.
The sudden and unexpected collapse of QuadrigaCX, Canada’s largest cryptocurrency exchange, is almost straight out of mystery books. This horror story is about a recently divorced lady, 115,000 investors, and over $190 million that went missing overnight.
It was back in 2014 when Jennifer Robertson, our protagonist, met Gerald Cotten on Tinder. The duo seemed to gel well together. Cotten was a successful crypto entrepreneur. He founded the firm Quadriga Fintech Solutions, which owned QuadrigaCX. The duo spent millions as easily as he earned them. From yachts to private planes, they had it all.
In October 2018, after dating for four years, the pair tied the knot and decided to travel to India. The very philanthropic couple planned their visit in December of the same year. They wanted to sponsor an orphanage there.
The nightmare begins
Just 12 days before their travel, Cotton formulated a will. He made his new wife, Robertson, the sole beneficiary of his estate. If anything happened to him, she would inherit it all.
Less than two weeks later, the couple were in India. It is here that the horror started.
Cotton fell ill, went to the hospital in Jaipur, Rajasthan, and never came out. He died in the hospital. Just days after bequeathing her everything, he was gone.
Now a widow, Robertson had inherited immense wealth. But her troubles were starting.
Over 100,000 people had given money to Cotton to invest in Bitcoin and cryptocurrencies. When we say money, we mean nearly $200 million. But they were now missing.
It wildly believed that Cotton had stored the missing assets in cold storage wallets. But nobody had the keys. No one, including Robertson, had any access to it. It seemed he had taken it to the grave with him.
The new window was going through hell. He discovered that her dead husband had run a Ponzi scheme and usurped millions from customers.
Angry users didn’t hold back their attack. Some found it suspicious that he had died just days after leaving her everything. Others argued Cotton had faked his death and demanded his body be dug out to investigate. She received death threats and had to go through a long bankruptcy procedure.
The nightmare is not over yet. She has since written a book called “Bitcoin Widow: Love, Betrayal and the Missing Millions”. Imagine being caught up in that horror. It is truly a story worth remembering on Friday the 13th.
2. That Indian dude who faked his kidnapping
Cryptocurrency extortions are not unheard of. They are, in fact, more common than one would think. Some are plain-out evil that leaves a lasting scar.
In July 2023, one Indian family received the worst call. Naman Kumar, their 35-year-old son, had been kidnapped. The call was from their son’s number. However, the voice behind the speaker was not Kumar. The “kidnapper” demanded INR 20 lakhs ($24,000) for his release.
Devastated and panic-stricken, they went to the police. In what became a rather short investigation, the police found his son. He was in the city (Lucknow), relaxing in a small hotel. Nobody had kidnapped him.
He had faked his abduction to extort money from his family. Why? Well, blame his love for Bitcoin.
Having incurred losses from BTC investments, he owed numerous acquaintances Rs 54 lakh ($65,000). After failing to borrow more to repay his debts, he devised a “kidnapping” scheme to extort money from the family.
After losing that money, the horror he had to go through is only second to what his family went through. Don’t borrow to buy Bitcoin or scare your family like that.
3. Aussie victims of Sextortions to extract Bitcoin
Here is one relevant Friday the 13th horror story from “Down Under.”
Sextortion, threatening to share nude or explicit images or videos of someone if they don’t pay a ransom, has become common.
It usually starts with an email or a call demanding victims deposit Bitcoin or another cryptocurrency in a given wallet. To make them comply, they claim to have compromising videos and pictures of texts from the victim that they plan to share with others.
If the victim doesn’t send the demanded crypto before the deadline, they will embarrass them by sending these to their contacts.
In 2020, several Australian women were horrified to receive emails demanding payments in Bitcoin. Failure to comply would result in their videos and pictures going public. How would they know who to send? Since they had hacked their email IDs, they also had access to their phonebooks and email contacts.
Going to the police would lead to no result. “Don’t try to find me – it is pointless. All the cryptocurrency transactions are anonymous,” they warned, according to 9News.
The horror women go through at the hands of extortionists is hard to comprehend. It is one thing when they demand money. However, it is another that aged women have to learn the complications of BTC under stress.
4. Maxing out the credit card and losing it all
Imagine betting more money than you have on cryptocurrencies and losing it all. One man did exactly that.
According to a post by Confessions, one user did just that. He took out all the savings in a joint savings account with his wife ($450,000) to invest. Then, like a brave idiot, he maxed out his credit card and took a cash advance of 250,000 on 35% p/a interest. Like any good trader would (sarcasm alert), he went 50x leverage long.
The idea came from a Telegram group. Then horror struck. As the market dumped, he wasn’t around to do anything. He lost it all. Perhaps his wife, too.
5. Another crypto extorsion attempt from India
Remember the Indian guy above who tried to extort money from his family? Well, here is another one from his country.
Last May, Ashok Kumar, a resident of Faridabad, reported to the local police that he had received threatening calls, texts, and emails demanding INR 5 lakh ($6000). Like any good criminal, he demanded the ransom in Bitcoin, the leading cryptocurrency in the market.
Kumar was horrified. The caller threatened to shoot his son in the moving vehicle if he failed to pay. They also told him they might kidnap him and demand $120,000 for his release if he didn’t take them seriously.
The police investigation was successful. Before Kumar could lose his sanity, they arrested the culprits. But the horror the Indian father endured will stay for life.
As the calendar prints Friday the 13th, these crypto horror stories should remind us of safe internet practices. Cryptocurrencies, like all assets, can be risky.
