France has seen a dramatic increase in crypto-related kidnappings, with 41 reported incidents targeting cryptocurrency holders since January 2026, averaging one every 2.5 days. This alarming surge follows the arrest of a French tax official accused of selling sensitive investor data to criminal networks, as highlighted by Telegram founder Pavel Durov and confirmed by multiple reports. The situation has intensified concerns over data security and the physical safety of crypto investors in the country.
The controversy centers on Ghalia C., a 32-year-old French tax administration employee, who was detained in June 2025. Prosecutors allege she exploited the tax administration’s "Mira" software to access and sell confidential information, including home addresses and financial records of cryptocurrency specialists and investors, to criminal organizations. Her appeal for release was rejected, with authorities noting her refusal to provide phone access or identify contacts.
The leaked information has reportedly enabled criminals to orchestrate "wrench attacks"—physical assaults designed to force victims to surrender cryptocurrency access codes. "The criminals didn't need to hack anything. They bought a list from someone inside the government," stated Mario Nawfal in a widely circulated tweet, referencing the situation. This has transformed France into a high-risk environment for those holding digital assets, according to industry observers.
Investigations into Ghalia C.'s activities revealed searches targeting high-profile individuals and cryptocurrency holders, alongside cash deposits and Western Union transfers in her accounts. The case has raised broader questions about the security of government-held data and the potential for insider abuse, with authorities probing whether other officials were compromised by the same network. Jean-Didier Berger, a minister delegate to the interior minister, announced measures at Paris Blockchain Week to protect investors.
The French government and law enforcement are grappling with the implications, as the incidents underscore a critical intersection of data privacy, physical security, and the burgeoning cryptocurrency market. Pavel Durov warned that expanding government access to personal data could exacerbate such risks if systems are breached, stating, "More data = More victims." The ongoing crisis highlights the urgent need for robust data protection measures to safeguard individuals in the digital asset space.
