Skip to main content

Russian Crypto Expert Released After Allegedly Being Kidnapped

Pavel Lerner, the Russian IT specialist kidnapped by masked men near his Kiev office on Tuesday, has been released after reportedly paying a bitcoin ransom worth more than a million in USD. This sum and payment has not been confirmed. Exmo’s executive was dropped off on a roadside by his attackers and is in a state of shock. The crypto entrepreneur has so far remained silent about the attack, that also shocked many Russians and Ukrainians. 

Read more: Russian Reports Say Crypto Entrepreneur Pavel Lerner Kidnapped in Kiev

Snatched by Men With Rifles and Balaclavas

“He was freed by his kidnappers”, a police sources told Strana.ua, the Ukrainian website that broke the news about Lerner’s mysterious disappearing. The six attackers were armed with assault rifles and were wearing balaclavas. They dragged Lerner into a van in broad daylight on a main street in the Ukrainian capital, security officials added. The vehicle, a black Mercedes-Benz, had stolen registration plates. Friends of the Russian businessman reported him missing after he stopped taking phone calls on December 26.

The blockchain expert has been released after paying a ransom of more than $1m in bitcoins, a high-ranking Ukrainian official revealed [Editor’s note: this piece of info has not been confirmed]. “He was kidnapped by an armed gang for the purpose of extorting bitcoins”, Anton Gerashchenko, advisor to the Ukrainian interior minister, told the Financial Times. He described the attack as a “bitcoin kidnapping” and revealed “operative information” about the amount Lerner had paid for his freedom. Local and Russian media quote other sources claiming that the abductors simply got scared by the wide coverage and decided to let him go.

Russian Crypto Expert Released After Bitcoin Ransom of $1m

Shock and Awe in Russia and Ukraine

Pavel Lerner’s kidnapping has stunned crypto communities in both Russia and Ukraine where he has several businesses operating mining facilities and working on blockchain development projects. Exmo Finance LLP, the UK registered company he is working for, is a leading cryptocurrency exchange in the post-Soviet space, popular for processing Russian ruble transactions. Exmo has almost 95,000 active users and has hosted trading of $125m worth of bitcoin in a single day, BBC and FT reported. According to its website, more than 996 000 people in 200 countries have used its services.

With authorities reluctant to officially disclose details during an ongoing investigation, Lerner’s disappearing has prompted media speculations of a possible detention, a new “Vinnik case”. Alexander Vinnik is another Russian national with cryptocurrency background that has attracted a lot of media attention. He was arrested in Greece earlier this year on accusations of money laundering and other criminal activities through the now defunct BTC-e exchange, supposedly operated by him. US officials believe Vinnik is responsible for laundering $4 billion worth of bitcoin stolen in the Mt. Gox hack and have requested his extradition. He is also wanted by authorities in Russia where he is charged with stealing funds worth $10,000 USD.

Radio Silence After Lerner’s Release

But the “Vinnik scenario” is unlikely in Lerner’s case, as the 40-year-old Russian entrepreneur has never tried to hide his association with crypto businesses in several European countries – he has also resided in Poland and Spain. Initial media reports described him as the managing director of Exmo and according to his Linkedin profile he is the CEO of the British company running the exchange. In a statement, Exmo referred to him as “leading analyst” and “blockchain expert who leads an array of personal startup projects not related to the operations of the platform”.

Last week the UK-based cryptocurrency exchange posted that it had been targeted by cyber attackers. After Lerner’s abduction, the company asked for any information that could lead to finding him. It also addressed customers’ concerns stating that Pavel’s activity did not involve access to their financial assets and personal data. The exchange continued its operations despite the alleged kidnapping.

Pavel Lerner is yet to speak publically about his abduction. Attempts to contact him after his release have been unsuccessful. Ukrainian media believe he has decided to remain silent following instructions by the security services. “At the moment he is safe, and there was no physical harm inflicted on him. Nevertheless, Pavel is currently in a state of major stress, therefore, he will not provide any official comments in the coming days”, Exmo said in a statement published on its website.

What do you think of the abduction? Leave your comments below!

Images: Shutterstock.

Need to know the price of bitcoin? Check this chart.

The post Russian Crypto Expert Released After Allegedly Being Kidnapped appeared first on Bitcoin News.



from Bitcoin News http://ift.tt/2EiHmgc
Labels:

Comments

Post a Comment

Popular posts from this blog

Economists Discuss Russia, China Potentially Developing Gold-Backed Currency That Could Undermine US Dollar

Economists have weighed in on reports that China and Russia may be developing a new gold-backed currency that could undermine the U.S. dollar’s status as the world’s primary reserve currency. Russia and China May Be Developing Gold-Backed Currency Several experts have shared their views on Russia and China potentially creating a new gold-baked currency, Fox Business reported Saturday, emphasizing that China has been buying up huge quantities of gold while Russia was forced off the U.S. dollar due to sanctions imposed on the country following its invasion of Ukraine. The news outlet noted that some experts have cautioned that these moves, along with the closer relationship that has developed between Moscow and Beijing, point to the likelihood of China attempting to launch a gold-backed currency. However, neither Russia nor China has officially confirmed plans for such a currency. Craig Singleton, senior fellow at the Foundation for Defense of Democracies and a former U.S. diplomat,...
Post a Comment
Read more

Fidelity Discusses Bitcoin as Portfolio Insurance — Could Soon Stand in ‘Stark Contrast’ to Path Fiat Currencies Take

Fidelity Digital Assets, a subsidiary of Fidelity Investments, says that bitcoin could be considered portfolio insurance. The firm notes that the cryptocurrency “may soon stand in stark contrast to the path that the rest of the world and fiat currencies may take — namely the path of increased supply, additional currency creation, and central bank balance sheet expansion.” Fidelity Says Bitcoin Could Be Portfolio Insurance Fidelity Digital Assets, a subsidiary of Fidelity Investments, recently published a research study titled “The Rising Dollar and Bitcoin.” The research outlines “how bitcoin could be considered portfolio insurance” as the rising dollar impacts global currency markets. “The strengthening U.S. dollar is wreaking havoc among other countries and may put pressure on the Federal Reserve to soon reverse its tightening monetary actions, something that has precedent based on 1985’s Plaza Accord,” Fidelity explained. In addition, “more monetary debasement may be needed to ...
Post a Comment
Read more

Mt Gox Creditors Updated, Trustee Says Rehabilitation Custodian Is ‘Currently Preparing to Make Repayments’

On August 31, 2022, the Mt Gox trustee Nobuaki Kobayashi explained in a recent letter that the rehabilitation custodian is “currently preparing to make repayments” to Mt Gox creditors. Trustee Updates Mt Gox Creditors — Repayment Date and Exchange Still Unknown Last week speculation and rumors concerning the release of 140K bitcoin ( BTC ) from Mt Gox littered social media platforms and headlines. Bitcoin.com News covered the situation six days ago as a number of people and Mt Gox creditors called the rumors “ fake news .” During that same period of time, a bitcoin whale transferred 10,000 BTC to unknown wallets, and a 2018 annotation , heuristics, and clustering methods show the funds likely originated from the June 2011 Mt Gox hacks. Following the mysterious whale transfer, last Wednesday, Mt Gox published an official update from the court trustee Nobuaki Kobayashi that explains the court is “currently preparing to make repayments” to creditors. Mt Gox creditors have been wait...
Post a Comment
Read more