The CEO of WonderFi, a prominent Canadian cryptocurrency holding company, was reportedly hijacked during rush hour in Toronto and later released after paying a ransom of a million Canadian dollars, or about $720,000.

Dean Skurka was forced into a vehicle by assailants on Wednesday but was released unharmed after the money was paid.

Skurka Reassures Users of Fund Safety

According to a CBC Toronto report, the executive confirmed the events in a statement on Thursday, stating that he had been involved in an “incident” but was safe. He also reassured the public that the funds and data of WonderFi clients remained safe and had not been impacted by the reported kidnapping.

Toronto police have confirmed that an investigation is ongoing but have not released further details about the circumstances surrounding the situation. However, it is worth noting that the alleged incident occurred the same day WonderFi announced its third-quarter earnings, during which the company reported a 153% increase in revenue compared to the same period in 2023.

As the crypto market continues its bullish momentum, with Bitcoin setting new records, incidents like this are becoming more common. Globally, cases of crypto-related kidnappings and extortion have risen.

Notably, the number one cryptocurrency recently reached a new all-time high, stopping just shy of $77,000, on the back of Donald Trumps return to the White House and the U.S. Federal Reserves latest rate cut.

Crypto-Related Kidnappings on the Rise

Jameson Lopp, co-founder and chief security officer of Casa, a firm specializing in cryptocurrency security, confirmed that Skurkas abduction marks the 171st case of suspects using physical violence to steal Bitcoin.

“The rates of these kinds of incidents tend to correlate with the exchange rate of Bitcoin,” Lopp told CBC. He explained that as the price of cryptocurrency increases, awareness of the space spreads throughout society. This attracts more individuals with criminal intentions who are inclined to attack known crypto holders physically.

The security expert further explained that the decentralized and easily transferrable nature of cryptocurrencies makes them attractive targets for criminals.

He also pointed out that while most victims in these crimes are regular people, high-profile figures, including wealthy early adopters, frequently fail to implement security measures that match their risk level.

In Thailand, police recently arrested 12 individuals, including seven officers, involved in a kidnapping ring targeting a Chinese national for 10 million USDT. Meanwhile, Hong Kong authorities rescued a 19-year-old from a kidnapping ordeal that involved the extortion of approximately $23,000 in crypto profits.

In a similar case in Vietnam, two individuals were sentenced to life imprisonment in 2023 after carrying out an abduction that resulted in the theft of $1.5 million in Bitcoin from their victim.