WonderFi CEO Dean Skurka kidnapped, released after reportedly paying $1-million ransom

Dean Skurka, president and CEO of Toronto-based cryptocurrency company WonderFi, was reportedly kidnapped and held for ransom in downtown Toronto yesterday.

A Toronto Police Service spokesperson told BetaKit that police were called about a kidnapping in the area of University Ave. and Richmond St. W. just before 6 p.m. on Nov. 6 after suspects forced the victim into a vehicle and made a demand for money. The victim was later located in Centennial Park in Etobicoke uninjured.

The Toronto Police Service spokesperson declined to confirm the name of the victim to BetaKit or share further details about the incident, noting that the investigation remains ongoing.

WonderFi confirmed to BetaKit that Skurka was involved in an “incident” yesterday but is now safe.

However, CBC News, which was first to report the kidnapping news, identified the victim as Skurka. According to CBC News, Skurka was released after a ransom of $1 million was paid electronically.

A WonderFi spokesperson confirmed to BetaKit today via email that Skurka was involved in an “incident” yesterday but is now safe.

“[WonderFi] is providing its full cooperation to the Toronto Police Service on this active investigation,” the spokesperson told BetaKit. “The company can confirm that client funds and data remain safe, and were not impacted by this incident. Our top priority is ensuring our employees’ safety.”

BetaKit has also reached out to Skurka for comment.

Skurka addressed the incident in LinkedIn and Twitter posts on Nov. 8. 

“Thank you to everyone who has reached out over the last few days. I am grateful for the support from the Toronto business community and the global crypto community. Toronto is not just our headquarters, it’s a city of innovation and resilience, and we’re proud to be a part of it,” he wrote.

“I want to reassure everyone that I am safe and doing well,” Skurka added. “The investigation by Toronto Police into this incident is ongoing with my full cooperation.”

Skurka emphasized that WonderFi is “more committed than ever to building the future of crypto,” adding, “this won’t slow us down!”

WonderFi owns two of Canada’s most popular crypto exchanges in Bitbuy and Coinsquare, as well as crypto payments platform SmartPay and a stake in crypto custodian Tetra Trust. The Toronto Stock Exchange-listed firm reported its third-quarter earnings on Nov. 5.

High-profile figures in crypto face significant security risks. In “$5 wrench attacks,” robbers threaten or physically attack people known to hold large amounts of crypto seeking their private keys.

Anthony Di Iorio, the Toronto-based co-founder of Ethereum, announced plans to leave the crypto industry in 2021 due to security concerns, though he returned a year later with the launch of Andiami.

Kidnappings involving crypto are not uncommon. A historic Bitcoin theft in the United States (US) was recently tied to a kidnapping.

Crypto-related kidnappings have also occurred in Toronto before in recent years with the cases of self-proclaimed ‘Crypto King’ Aiden Pleterski (who has since been charged with fraud) and wealthy Chinese student Wanzhen Lu.

Per a recent report from TRM Labs, crypto hacking thefts doubled during the first half of 2024 on a year-over-year basis, driven in part by rising crypto prices. 

Jameson Lopp, co-founder and chief security officer at Casa, a US security firm that focuses on protecting cryptocurrency owners, told CBC News that the rate of incidents where physical violence is used to steal Bitcoin tends to correlate with the price of Bitcoin, which hit a record high this week.

UPDATE (11/08/24): This story has been updated to include a statement from Dean Skurka.

With files from Alex Riehl.

Feature image courtesy WonderFi.