Experts Warn of Rising Physical Crimes in Digital Assets Sphere
An American tourist visiting London claims he was abducted, drugged, and robbed of his life savings by a man posing as an Uber driver. Jacob Irwin-Cline, a 30-year-old former software developer from Oregon, says the assailant drained $123,000 worth of Bitcoin, XRP, and other digital assets from his crypto wallets during the early hours of May 9. This incident is part of a disturbing trend where criminals are moving from online hacking to physical attacks to steal cryptocurrency, highlighting new risks faced by digital asset holders.
Tourist Lured into Fake Uber After Night Out in London
The incident occurred after Irwin-Cline had just left The Roxy nightclub in Soho. According to him, a driver, calling out the alias on his Uber account, flagged him down. Believing the car and driver matched the app details, he got into the vehicle.
He now believes he was lured into a lookalike vehicle operated by a criminal linked to a fraudulent Uber account. The situation escalated after the driver offered Irwin-Cline a cigarette, which he suspects was laced with scopolamine — a powerful sedative known for its use in South American crimes.
“I passed out for what I assumed to be 20 to 30 minutes,” he recalled.
When he regained consciousness, he found himself injured on the side of a road in Golders Green, missing both his phone and memory of how he got there. By the time he returned to his hostel, his laptop had been wiped, and his digital assets had vanished.
Screenshots provided to MyLondon show $73,000 worth of XRP and $50,000 in Bitcoin had been moved to various wallets. He believes the stolen funds were funneled through exchanges like MEXC and BTSE, but without insurance or a court order, recovery remains unlikely.
The alleged robbery has been reported to the Metropolitan Police, Action Fraud, the FBI’s Virtual Assets Unit, and Uber. Authorities confirmed that an investigation is underway, but no arrests have been made.
The Metropolitan Police said the report was filed the same morning, with cryptocurrency theft estimated at $150,000.
Meanwhile, Irwin-Cline is staying in London to cooperate with authorities, though he holds little hope of recovering the stolen funds. “It’s virtually impossible to get that money back unless some weird miracle happens,” he said.
Physical Cryptocurrency Crimes: A Growing Threat
This case is part of a disturbing trend where criminal elements are moving from purely digital methods to physical attacks for stealing cryptocurrency. According to security experts, such incidents are becoming more common as crypto assets grow in value and criminals become more aware of methods to extract digital keys.
“We’re seeing a dangerous shift in the tactics of criminals targeting cryptocurrency owners,” explains Jane Hopkins, a digital security analyst at the Cybersecurity Research Institute. “Traditionally, threats were primarily digital — phishing, hacking, malware. Now criminal elements are increasingly combining physical attacks with digital methods to force victims to reveal their keys or gain direct access to their devices.”
According to Chainalysis, illicit cryptocurrency activity surged to at least $40.9 billion in 2024, with the number likely to grow as more criminal-linked wallets are identified. Hacks alone accounted for $2.2 billion in stolen assets—a 21% increase from the previous year.
But the threats go beyond online exploits. Criminal groups are using cryptocurrencies to fund and conceal a wider range of crimes—from investment scams and AI-enhanced romance frauds to drug trafficking and even physical violence.
In one alarming case on May 13, 2025, the daughter and grandson of Paymium’s CEO were nearly kidnapped in Paris by masked men. This incident, like Irwin-Cline’s case, underscores the growing trend toward physical crimes related to cryptocurrency.
Precautionary Measures for Cryptocurrency Owners
In light of the increase in physical attacks, security experts recommend cryptocurrency owners take additional precautions:
- Use multi-factor authentication and hardware wallets: “Hardware wallets that store keys offline make theft significantly more difficult even if there’s physical access to devices,” recommends Michael Foster, a crypto security specialist.
- Segregate assets: “Keep only a small portion of your assets in hot wallets for everyday use. The majority should be in cold storage inaccessible via the internet,” explains Helen Chang, a blockchain security expert.
- Avoid discussing your holdings: “Never discuss the size of your crypto assets publicly or with strangers. Social engineering often begins with identifying potentially profitable targets,” warns Hopkins.
- Exercise vigilance while traveling: “Travel makes you particularly vulnerable as you’re in unfamiliar surroundings and often more relaxed. Consider using a temporary device when traveling that doesn’t contain keys to significant assets,” advises Foster.
- Verify vehicle authenticity: “Always check ride details in the app, including the license plate, before entering a vehicle. When in doubt, ask the driver to state your name rather than the other way around,” notes Sarah Pratt, a travel security expert.
Challenges with Investigation and Recovery of Stolen Cryptocurrency
One of the major challenges with cryptocurrency-related crimes is the difficulty in tracking and recovering stolen funds. In Irwin-Cline’s case, even with screenshots showing the movement of funds, the chances of recovery are slim.
“Tracking cryptocurrency transfers is technically possible thanks to blockchain transparency, but criminals often use mixers, cross-chain bridges, and exchanges without KYC to obscure trails,” explains Robert Lee, a former FBI cybercrime investigator. “Without international cooperation and court orders for crypto exchanges, it’s almost impossible to recover funds, especially if they’ve already been converted to fiat currency or other assets.”
This is compounded by the cross-border nature of many crypto crimes. In Irwin-Cline’s case, an American citizen was victimized in the UK, and the funds likely passed through exchanges that might be based in entirely different jurisdictions.
“Criminals deliberately exploit jurisdictional complexities,” notes Lee. “They know international investigations require significant resources and often get bogged down in bureaucratic procedures, giving them ample time to cover their tracks.”
Outlook and Need for Enhanced Security Measures
Irwin-Cline’s case serves as a grim reminder of the evolving threats facing cryptocurrency owners. As digital assets grow in value and become more widespread, the number of combined physical and digital attacks is likely to increase.
“We’re at an inflection point where cryptocurrency security needs to be viewed not just as a digital issue but as a physical security concern,” argues Hopkins. “User education, improved security protocols, and international law enforcement cooperation will all be crucial in addressing this evolving threat.”
For people like Irwin-Cline, this offers little consolation, but their stories can serve as warnings to others. As Lee concludes: “In the cryptocurrency world, the principle of ‘don’t trust, verify’ needs to extend beyond transactions to interactions with the physical world. Vigilance must be constant—both online and offline.”
Irwin-Cline’s case continues to be investigated, and authorities are urging any potential witnesses or those with information to contact the London Police or Action Fraud.