WonderFi CEO Kidnapped & Released After $1 Million Ransom Payment

TLDR:

• WonderFi CEO Dean Skurka kidnapped in downtown Toronto on November 6, 2024
• $1 million ransom paid electronically for his release
• Victim found unharmed at Centennial Park in Etobicoke
• Incident occurred same day WonderFi reported 153% Q3 earnings increase
• Company confirms client funds and data remained secure

The president and CEO of Toronto-based cryptocurrency firm WonderFi, Dean Skurka, was kidnapped during rush hour in downtown Toronto on Wednesday, November 6, 2024. The incident ended with his safe release after a $1 million ransom payment was made electronically.

Toronto Police Service responded to reports of a kidnapping near University Avenue and Richmond Street West just before 6 p.m. According to police, multiple suspects forced Skurka into a vehicle and made demands for money.

The incident occurred on the same day WonderFi announced its third-quarter earnings results, which showed a 153 percent increase compared to the same period in 2023. After the ransom payment was made, Skurka was found unharmed at Centennial Park in Etobicoke.

In an email statement to CBC Toronto on Thursday, Skurka confirmed his involvement in what he described as an “incident” and assured that he was safe. He emphasized that client funds and data at WonderFi remained secure and unaffected by the event.

WonderFi, which is backed by Shark Tank co-host Kevin O’Leary, operates as one of Canada’s leading public-listed cryptocurrency firms. The company is listed on the Toronto Stock Exchange under the ticker WNDR and maintains a market capitalization of $75 million.

The firm’s operations include developing and investing in both centralized exchanges and decentralized protocols. Recent company statements indicate WonderFi holds $1.35 billion worth of assets under custody as of October 30, 2024.

Jameson Lopp, co-founder and chief security officer of Casa, a cryptocurrency security firm, noted that this incident marks the 171st known case of physical violence being used to steal cryptocurrencies. Lopp explained that such incidents often correlate with bitcoin’s exchange rate.

The CEO of @WonderFi was kidnapped in downtown Toronto yesterday and held until a $1M ransom was paid for his release.https://t.co/rAW7s6LaIw

— Jameson Lopp (@lopp) November 7, 2024

The timing of the kidnapping coincided with bitcoin reaching a new price record, exceeding $75,000 US. This price milestone may have contributed to increased attention on cryptocurrency holders and executives.

According to security experts, cryptocurrencies can be more appealing targets for physical theft compared to traditional assets due to their easy transferability and the often-limited physical security measures employed by cryptocurrency holders.

WonderFi’s business portfolio includes ownership of several crypto firms including Coinsquare, SmartPay, Tetra Trust, and Bitbuy. Before becoming CEO of WonderFi, Skurka served as President of Bitbuy from January 2018 to July 2023.

Canadian police has stated that their investigation into the incident continues. Authorities have not released information about potential suspects or additional details about the kidnapping and ransom payment process.

This incident adds to a growing list of cryptocurrency-related kidnappings globally. In July 2024, Ukrainian authorities arrested four suspects for the kidnapping and murder of a Bitcoin holder in Kyiv, involving the theft of $170,000 worth of Bitcoin.

In a separate case in August, six Malaysian nationals faced charges for kidnapping a Chinese national and demanding $1 million in Tether, a cryptocurrency stablecoin, as ransom.

The safety of cryptocurrency executives and holders has become an increasing concern within the industry. Experts advise that high-profile figures in the cryptocurrency space should consider enhanced security and privacy measures to protect against such threats.

WonderFi continues its normal operations following the incident. The company’s various cryptocurrency exchange platforms and services remain active and unaffected by the events involving their CEO.

Neither WonderFi nor Skurka have made additional public statements about the incident on social media or through official company channels. The company maintains its focus on regular business operations while cooperating with law enforcement in their ongoing investigation.