The Paris Public Prosecutor’s Office and the National Cyber Unit of France launched a preliminary investigation this Thursday following a cyberattack against the crypto tax platform Waltio. The incident, according to reports from authorities, has jeopardized the digital asset security of thousands of investors, being this an event that has raised alarms regarding personal data protection within the financial technology sector.
The hacking group known as Shiny Hunters has been identified as the party responsible for the breach, demanding a ransom after seizing confidential information from approximately 50,000 users. The majority of those affected reside in French territory, which is why local justice acted swiftly to determine the exact scope of the theft and mitigate potential targeted attacks against crypto-asset holders.
Authorities warned that the leakage of names, addresses, and financial wallet details facilitates the execution of sophisticated scams under legitimate security pretexts. As data protection technology has been compromised, users could receive fraudulent communications, whose primary goal is the diversion of capital through deceptions that impersonate official bodies or the affected platform itself during these days.
Risks of physical attacks and extortion following the massive data leak
The official notice highlighted a greater danger: the use of information to perpetrate physical attacks known as “wrench attacks.” Because criminals now know the location and volume of their victims’ holdings, the risk of kidnappings and unlawful detentions has increased considerably, representing a direct threat to the physical integrity of French investors and their closest family members.
Furthermore, it is feared that criminals will use violence to force digital asset transfers beyond the reach of authorities. This modality of personal extortion has gained ground globally, demonstrating that digital vulnerability transcends screens, which is why the community has been urged to strengthen their private security protocols and maintain absolute discretion regarding their current investment portfolios.
What measures are French regulators taking ahead of the MiCA transition?
On the other hand, this incident occurs while French regulators supervise the transition toward the European Union’s MiCA regulatory framework. Companies have until June 30th to notify whether they will seek an official license, aiming to ensure that regulatory compliance standards are respected, as the lack of adequate supervision in personal data custody remains a critical point for the ecosystem.
Finally, authorities issued warnings to companies that do not comply with the security requirements established by the new legal framework. The Waltio case underscores the urgency of implementing more robust infrastructures to guarantee digital asset security, while the criminal investigation is expected to successfully identify those responsible from the Shiny Hunters group to bring them before international justice.
