Ukrainian Police Arrest Two in Alleged Crypto Extortion Murder – Decrypt

Austrian police have arrested two Ukrainian nationals for the alleged torture and murder of a 21-year-old student whose body was found burned beyond recognition in his Mercedes following a violent assault that left his crypto wallet drained.

Local media identified the student as Danylo K., son of the deputy mayor of the Ukrainian city of Kharkiv, who was discovered in the back seat of his vehicle around early morning on November 26, after flames and smoke triggered fire alarms at a nearby residential complex.

Vienna police announced Tuesday that a 19-year-old and a 45-year-old suspect were apprehended in Ukraine on Saturday, three days after fleeing across the border. 

While the motive for the crime remains unclear, withdrawals from the victim’s crypto wallet were detected, making a motive of greed appear likely, authorities said.

The suspects will not be extradited, as the case has now been transferred to Ukrainian authorities at their request, the police said.

The assault allegedly began in the Sofitel hotel garage, where the younger suspect allegedly ambushed his fellow student before he was forced into his own Mercedes, driven to Donaustadt, beaten so severely his teeth were knocked out, and left to suffocate before being doused in gasoline and set ablaze in the back seat, according to a local media report.

“The fire investigation determined that the fire had been started inside the car using gasoline,” police said in their statement. “Investigators recovered a melted canister from the back seat.”

Crypto ‘wrench attacks’

The Vienna killing comes amid a rise in physical attacks targeting crypto holders, known as wrench attacks.

Jameson Lopp, co-founder and chief security officer at self-custody platform Casa, who maintains a database tracking wrench attacks, has documented nearly 70 attacks this year, with over 30% occurring in Europe.

Last weekend in San Francisco, a man posing as a delivery driver bound a homeowner and forced him to surrender $11 million in crypto. 

Earlier this month in Canada, court records detailed a 2024 home invasion in which a family was tortured as assailants stole $1.6 million in Bitcoin. 

The pattern has turned deadly in some regions, as last month, Russian crypto promoter Roman Novak and his wife were murdered in the UAE after meeting men who posed as investors and demanded access to his wallets.

“Europe has several converging factors: relatively dense urban environments, strong crypto adoption in certain corridors, and highly capable organized crime groups already experienced in armed robberies, extortion, and kidnappings tied historically to drugs and cash,” Ari Redbord, VP, global head of Policy and Government Affairs at TRM Labs, told Decrypt.

“Crypto extortion fits logically into their existing toolkit,” he said.

As digital theft becomes harder due to multisig, hardware wallets, operational security, and stronger exchange controls, “criminals may increasingly resort to coercion rather than hacking,” Redbord noted.

“It doesn’t mean wrench attacks won’t become common, but as long as crypto represents highly liquid, borderless value, physical targeting remains an attractive fallback method,” he added.