The ‘Bitcoin Family’ has completely overhauled its security measures amid rising cases of crypto-related kidnappings, according to a CNBC report.
The family, which sold all their belongings in 2017 to invest in Bitcoin (BTC) and now travels around the world, has taken extreme measures amid a rise in perceived threats. This includes storing parts of their Bitcoin wallet seed phrase etched on fireproof metal plates stored across four continents.
The family consists of Didi Taihuttu, his wife Romaine, and their three daughters—Joli, Juna, and Jessa. The Taihuttu family gained the spotlight over the years for living a bankless life supported by Bitcoin.
Taihuttu told CNBC:
“We have changed everything. Even if someone held me at gunpoint, I can’t give them more than what’s on my wallet on my phone. And that’s not a lot.”
Bitcoin Family is not alone in increasing security measures
Over the past few months, there has been a dramatic increase in crypto-related kidnapping and extortion cases. Earlier this year, David Balland, co-founder of hardware wallet Ledger, and his partner were kidnapped and tortured, with Balland reportedly losing a finger in the ordeal.
Early last month, the video of the attempted kidnapping of the daughter of the CEO of a prominent French crypto exchange in broad daylight went viral, striking fear among individuals with substantial crypto holdings.
Following the surge in attacks, the French government vowed to increase security measures for crypto executives. This included priority access to the police emergency line, home visits, and safety guidance and briefings from law enforcement, Politico reported.
Days after the incident in France, an Italian tourist escaped the clutches of his kidnappers from a Manhattan apartment. The victim was reportedly held hostage for 17 days and tortured using myriad methods, from electric shocks from tasers to being whipped with a gun. The perpetrators, who were trying to extort the victim’s Bitcoin wallet password, were arrested late last month.
Amid the spate of kidnappings, crypto investors like the Bitcoin Family have started tightening security measures. Several of them have resorted to private security firms to hire bodyguards or armored trucks to ensure safety.
Insurance companies have also started cashing in on the opportunity, offering kidnap and ransom (K&R) policies tailor-made for crypto holders.
Taihuttu told CNBC that they’ve factored in the rising cases and reassessed their security measures. He said:
“We’ve been talking about it a lot as a family. My kids read the news, too — especially that story in France, where the daughter of a CEO was almost kidnapped on the street.”
Bitcoin Family has taken security into their own hands
Amid the undeniable growth in threats, the Taihutti family has taken several steps to ensure safety.
Among the changes was the decision to ditch hardware wallets, which were once touted as the safest way to store crypto. Taihuttu said:
“It’s a strange world at the moment. So we’re taking our own precautions — and when it comes to wallets, we’re now completely hardware wallet-less. We don’t use any hardware wallets anymore.”
The Taihutti family decided to stay off hardware wallets amid growing concerns about backdoors and remote access features. Over the past eight months, the Bitcoin family switched from hardware wallets to a hybrid system where the seed phrase was stored via partly digital and partly analogue methods.
As part of the enhanced security measures, the family has split a 24-word Bitcoin seed phrase into four sets of six words. Each set of words is stored on a different continent. This means that Taihuttu needs to make at least one international trip, depending on which set of words is required, to access the wallet. He can, however, add funds to the wallet without any hassles. Taihuttu explained:
“Even if someone finds 18 of the 24 words, they can’t do anything.”
While Taihuttu stores some parts of the seed phrase through blockchain encryption platforms, he has etched others on fireproof steel plates with a hammer and letter punch and hidden them. He has also added a separate layer of personal encryption to throw off would-be attackers by switching out certain words of the seed phrase.
The family uses the above method to store about 65% of its crypto holdings, considering it to be safer than using a centralized vault, like the Swiss Alps bunker used by Coinbase-owned Xapo. This is because Taihuttu is concerned about being able to access his funds in case the company goes bankrupt.
The Taihuttu family has also moved away from centralized exchanges, executing around 80% of its trades via decentralized platforms like Apex.
For the family’s crypto stored in hot wallets for trading, Taihuttu uses multi-signature wallets to ensure enhanced safety. He added that they treat the majority of their cold wallet savings as a pension fund that the family will only access once the BTC price reaches $1 million.
Lifestyle changes amid growing threat
The Taihuttu family has a large social media presence, with tens of thousands of followers across platforms. However, the family has been stepping away from the spotlight amid the growing threats. He noted:
“We got a little bit famous in a niche market — but that niche is becoming a really big market now.”
Taihuttu believes that the number of crypto robberies is going to keep increasing, which is why the family is making tough choices, from curtailing video shoots to avoiding France.
While the family is currently in Thailand, they have stopped posting regular travel updates and shooting videos at home. Taihuttu said:
“We stayed in a very beautiful house for six months — then I started getting emails from people who figured out which house it was. They warned me to be careful, told me not to leave my kids alone. So we moved. And now we don’t film anything at all.”
Taihuttu added that while creating content is his passion, the concern for his daughters’ safety is forcing him to stay away from the camera.