Ledger Cofounder David Balland And Wife Kidnapped Extortion

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Ledger Logo/Homepage

David Balland, co-founder of Ledger, was kidnapped along with his wife by criminals demanding a $10 million ransom in Bitcoin, and sent one of Balland's severed fingers as proof. Thanks to a swift and coordinated response from law enforcement and the cryptocurrency industry, 95% of the ransom funds were frozen before the criminals could access them. This was achieved through collaboration with exchanges and stablecoin issuers like Tether. The criminals, aged between 20 and 40, were part of a gang involved in the crime. They are now facing life imprisonment for their actions.

About Ledger

"Based in France, Ledger is the largest cryptocurrency hardware wallet company." "Ledger is a hardware cryptocurrency wallet that is used to store, manage, and sell cryptocurrency. The funds held in these wallets are secured using a 24-word recovery phrase and an optional secret passphrase that only the owner knows."

"Ledger offers two products, the Nano S and Nano X, that can store the digital keys used to secure crypto wallets. The devices can be used with a variety of cryptocurrencies, are compatible with numerous apps, and are supposed to offer a safe way to manage crypto without compromising too much on convenience. Ledger says on its website that it has sold 1.5 million products to customers in 165 countries to date."

The Reality

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What Happened

On January 21, Ledger co-founder David Balland and his wife were kidnapped for a $10M ransom.

Key Event Timeline - Ledger Cofounder David Balland And Wife Kidnapped Extortion

Date	Event	Description
February 19th, 2015	Seed Funding Round	Ledger completes an initial funding round of $1.3m led by XAnge, Hard Yaka, and Pascal Gauthier.
March 30th, 2017	Series A Funding Round	Ledger secures $7m in funding from Avenir, Kima Ventures, Digital Currency Group (DCG), XAnge, Libertus Capital, and Wicklow Capital.
January 18th, 2018	Series B Funding Round	Ledger secures $75m in funding from Draper Esprit, Boost VC, Digital Currency Group (DCG), Korelya Capital, Draper Dragon, Draper Associates, and one other firm.
April 25th, 2019	Samsung Funding Round	Ledger secures an additional $3m investment from Samsung.
June 10th, 2021	Series C Funding Round	Ledger secures $380m from 10T Fund, iAngels Technologoies, Digital Currency Group (DCG), Cathay Capital, Felix Capital, Marcy Venture, and one other firm.
May 7th, 2022 1:34:00 PM MDT	Posting Bitcoin Prices	Posting a reminder about how bitcoin price has risen over time.
March 30th, 2023	Extended Series C Funding Round	Ledger secures an additional $109m from 10T Fund, Catha Innovation, VaynerFund, Morgan Creek Digital, True GLobal Ventures, CapHorn, and one other firem.
June 28th, 2024 6:26:00 AM MDT	Identity Theft Complaints	Nicholas Bacca experiences a wave of complaints and posts a warning about a wave of sophisticated identity theft scams happening over the phone. He emphasized that he does not give investment or crypto advice, except for the basic principle of "buy low, sell high." He advised anyone who receives one of these scam calls to file a complaint.
January 21st, 2025	David Balland Kidnapping	David Balland and his wife are abducted from their home and taken to separate locations.
January 24th, 2025 1:44:00 AM MST	0xLouisT Summary Published	0xLouisT publishes a summary of events on Twitter/X.

Technical Details

The kidnappers demanded a ransom of 100 BTC (~$10M) and, to prove the seriousness of their threat, sent a severed finger from Balland to his associates. This gruesome act showed the level of violence used to enforce the ransom.

Total Amount Lost

While the criminals initially demanded a ransom of 100 BTC (approximately $10 million), the actual amount lost was minimal due to the swift intervention of law enforcement and the cryptocurrency industry.

95% of the ransom funds were frozen almost immediately, thanks to a coordinated effort between law enforcement, stablecoin issuer Tether, and cryptocurrency exchanges. This meant that the criminals were unable to access most of the funds. The remaining funds that were not frozen were likely a small portion of the ransom, but the precise amount that was ultimately lost is not fully disclosed.

In short, the losses were limited due to the fast and effective action that blocked the majority of the ransom payment. The criminals were essentially unable to benefit from the Bitcoin ransom, and most of the funds were recovered before they could be transferred.

The total amount at risk has been estimated at $10,000,000 USD. The total amount lost has been estimated at $100,000 USD.

Immediate Reactions

There was a swift and highly coordinated response from both law enforcement and the cryptocurrency industry. Once the ransom demand was made and the kidnappers sent the severed finger as proof of their seriousness, the authorities quickly mobilized to track down the criminals and rescue the victims.

Law enforcement in France, particularly the GIGN (elite tactical unit), immediately began investigating the case. They used traditional methods, such as tracking stolen vehicles and tracing phones, while also leveraging digital tools to track the criminals' movements. They acted with precision, culminating in the rescue of David Balland and his wife from separate locations within 48 hours of the kidnapping.

Although cryptocurrencies like Bitcoin are often considered irreversible, the involvement of intermediaries such as exchanges and stablecoin issuers allowed the authorities to intervene and track the funds.

One of the most important technical responses came from the coordination between Tether, cryptocurrency exchanges, and law enforcement. Thanks to these efforts, 95% of the ransom was frozen before the criminals could access it. This was achieved by sending freeze requests to the platforms the criminals used to transfer the stolen funds. The rapid response meant that, despite the criminals using Bitcoin to carry out the ransom, the funds were quickly blocked, demonstrating that intermediaries can still control the flow of cryptocurrency in certain situations.

In addition to the actions of law enforcement, private security and industry leaders also played a significant role. Nicolas Bacca, former CTO of Ledger, had developed a system that allowed for rapid freezing of ransom funds through coordination with exchanges and stablecoin issuers. This system was pivotal in responding quickly to the crisis and limiting the criminals' access to the ransom money. The involvement of both private security firms like SEAL 911 and industry experts showed the importance of a collective response in these high-profile situations.

Ultimate Outcome

Digital forensics and tracking were also key to locating the criminals. Authorities used tools like WhatsApp account tracing to follow the perpetrators' movements, which led them to the location of the victims. Traditional law enforcement methods, including tracking stolen cars and phones, combined with digital tracking, helped authorities locate Balland and his wife. Law enforcement acted swiftly, launching two rescue operations conducted by GIGN, France's elite tactical unit. The criminals were apprehended, and most of the ransom funds were successfully frozen.

Total Amount Recovered

The total amount recovered has been estimated at $95,000 USD.

What funds were recovered? What funds were reimbursed for those affected users?

Ongoing Developments

The Balland kidnapping highlights a critical paradox in the cryptocurrency space. While cryptocurrencies are often touted as irreversible and uncensorable, intermediaries like exchanges and stablecoin platforms can still play a role in freezing assets when criminal activity is detected. This case serves as a reminder that, despite the decentralized nature of cryptocurrencies, centralized entities can still intervene to prevent financial crime.

Individual Prevention Policies

No specific policies for individual prevention have yet been identified in this case.

For the full list of how to protect your funds as an individual, check our Prevention Policies for Individuals guide.

Platform Prevention Policies

Policies for platforms to take to prevent this situation have not yet been selected in this case.

For the full list of how to protect your funds as a financial service, check our Prevention Policies for Platforms guide.

Regulatory Prevention Policies

No specific regulatory policies have yet been identified in this case.

For the full list of regulatory policies that can prevent loss, check our Prevention Policies for Regulators guide.