Recent Kidnapping Cases of Cryptocurrency Executives Prompt ‘Bitcoin Family’ Taihuttu to Revamp Asset Security Strategy
Recently, a series of kidnapping cases involving cryptocurrency executives have emerged, prompting the family known as the “strongest Bitcoin family,” the Taihuttus, to completely reform their asset security strategy by decentralizing their keys globally.
(Background: James Wynn quits? Self-proclaimed idiot gambler posts Hyperliquid referral link after losing $100 million)
(Further context: Over $60 million lost in a week: Whale James Wynn claims, “I am still richer than you, with passive income exceeding your yearly earnings.”)
The Taihuttu family from the Netherlands, consisting of five members, can be regarded as the strongest believers in Bitcoin (BTC). In 2017, they reached a consensus to sell all their possessions to purchase Bitcoin, including a 2,500-square-foot property and a profitable company. Since then, they have lived a nomadic lifestyle and are referred to as the “Bitcoin family.”
Due to the significant increase in kidnapping and ransom cases targeting cryptocurrency executives and wealthy holders, they recently shared in an interview with CNBC that they have completely restructured their asset security strategy by decentralizing their crypto private keys across four continents.
Decentralizing Seed Phrases Across the Globe
Recent incidents in France include the kidnapping and injury of a cryptocurrency company executive’s father and a violent home invasion involving the co-founders of crypto hardware wallet company Ledger, highlighting the growing concerns over crypto asset security.
In light of this wave of attacks, Didi Taihuttu stated during an interview:
“We changed everything. Even if someone holds a gun to my head, the most I can give them is what’s in my wallet on my phone. That’s not much.”
Their core security upgrade strategy involves meticulously splitting and decentralizing the seed phrases of their crypto wallets. (Seed phrases typically consist of 24 words that allow users to regain control of their cryptocurrency wallets if they lose their device or forget their password.) Didi Taihuttu explained that they have broken these 24 words into four groups, each containing six words, and hidden these phrases in secret locations across four continents.
“Even if you find most of the words, without all of them, you cannot access our entire assets.”
To ensure the durability and security of these seed phrases, some phrases are hand-engraved on specially made fireproof steel plates. Taihuttu personally used a hammer and metal punch tools to imprint the letters onto these plates, which were then carefully hidden. Besides the physical plates, another portion of the seed phrases is digitally stored through specialized blockchain encryption services, providing an additional layer of protection.
To further enhance the difficulty of cracking the codes, the Taihuttu family has additionally encrypted certain stored words by substituting some vocabulary or using codes, making it challenging for attackers to reconstruct the original seed phrases even if they obtain partial phrases.
He believes that excessive reliance on a single hardware device can pose a risk, especially in the face of physical threats. Therefore, they opted for a more thorough decentralized storage solution, shifting trust from a single device to a meticulously designed, multi-layered geographically dispersed system.
Upgrading Digital Defense: From Multi-Signature to Multi-Party Computation
In addition to reforms in physical storage, the “Bitcoin family” has also strengthened their digital asset defenses.
For their “hot wallets” necessary for daily transactions and internet connectivity, they have adopted a multi-signature protocol for protection. (Multi-signature technology requires that a transaction must receive approval and signature from at least two or more of the pre-set authorizers before it can take effect.) This mechanism, similar to traditional banking’s dual or multiple authorizations, effectively prevents fund loss due to the leakage of a single private key or personal coercion.
Taihuttu revealed that approximately 65% of the family’s crypto assets are locked in “cold storage” spread across four continents. At the same time, the storage devices they use do not rely on any commercially available wallets. Taihuttu firmly believes that this highly decentralized and privately controlled family setup is far more secure than any centralized third-party vault service or standard cold wallets available on the market.
Security Concerns Reshape Lifestyle
On the other hand, the growing security threats have significantly impacted the lifestyle of the “Bitcoin family.” Previously, they were happy to share their global travel updates and family life videos through YouTube and other social media to promote the Bitcoin and cryptocurrency lifestyle.
However, due to security concerns, they have recently stopped posting any content that may expose their real-time geographical location. Family members even decided to cancel their planned trip to France due to the recent spate of kidnapping cases in the country.
“I think we will see more and more robbery cases. So, we will definitely avoid certain high-risk areas. It’s a strange world, and we must remain vigilant at all times.”
The market has also begun to respond to the current security crisis targeting cryptocurrency holders. Some insurance companies have reportedly started offering Kidnap and Ransom (K&R) insurance services specifically for cryptocurrency holders.
As the value of cryptocurrencies continues to rise and more wealth is stored in digital forms, the issue of physical security is likely to become a critical concern that all cryptocurrency holders, especially high-net-worth individuals, must face seriously.
Further Reading:
Several insurance companies plan to launch “cryptocurrency millionaire kidnap ransom insurance,” with the earliest expected to be implemented this fall.
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