Law enforcement investigate crypto-linked disappearance of California octogenarian

Sheriffs in California have launched investigations into the disappearance of a 74-year-old man. According to reports, the man, Naipang Hou, disappeared in May after leaving his California home without his phone, and authorities believe the disappearance is linked to his family’s crypto fortune.

According to local law enforcement, they believe that the disappearance is a result of the affluence of his family through digital assets.

Hou was said to have left home on a Monday without his mobile phone, and days later, his silver Toyota Yaris was found abandoned near a hiking trail in Rancho Cucamonga. Authorities proceeded to declare him missing on May 4, with sheriff’s deputies now suspecting that he may have been kidnapped.

California sheriffs kickstart investigations into Hou’s disappearance

According to a statement by the San Bernardino County Sheriff’s Department on July 7, its Specialized Investigations Division had started looking into Hou’s disappearance, branding it suspicious and finding evidence of extensive fraudulent activities related to his bank accounts. The Sheriff’s Department mentioned that an unnamed suspect contacted Hou’s family with his phone to impersonate him.

While law enforcement in California has yet to arrest any suspect in the case, investigators have not ruled out foul play. In response to his disappearance, Hou’s son, Wen Hou, offered a $250,000 reward for anyone with information leading to the safe return of his father. He believes that someone stole his father’s identity and drained more than $1 million from his accounts.

Wen, who made his fortune in crypto, has been serving as the CIO of investment firm and hedge fund Coincident Capital since 2019.

Discussing his father’s disappearance, Wen said he had no reason to disappear. “I miss him a lot,” he told local media. “He’s sort of a guide to my life,” he said in an interview with ABC. He mentioned that his father had been remodelling their home earlier this year after he discovered a massive leak.

“He did not mention anything suspicious; we knew he’d been getting bids from multiple contractors,” said Wen. “He was living actually at an apartment that insurance provided, so he wasn’t always directly involved with the day-to-day repair.”

Wen noted that the last time he saw his father physically was when they went on a fishing trip. We had a great time,” Wen said. “He was mentally well, and he was happy, and there was nothing off about his personality or anything like that.”

Authorities have mentioned that he was likely abducted days after the fishing trip. Wen said he started growing suspicious after he texted his father to visit, and I felt like he was not the one replying.

According to commentators, wealthy crypto users often make themselves targets of criminals by flaunting their wealth online, neglecting online privacy or security. They added that poor security habits, along with the misconception that crypto is fully anonymous despite traceable blockchains, also increase vulnerability.

Another comment mentioned that users are unknowingly exposed as targets through data leaks, wallet activities, and their social media posts.

The trend, known as “wrench attacks” in the crypto industry, has seen an increase in kidnapping, threatening, and holding people hostage to steal their money or seed phrases. Founder of blockchain forensic firm CryptoCare, Nick Harris, mentioned that there have been 22 reported cases globally in the first half of the year. Harris mentioned that police and other authorities are now deploying cybercrime units and blockchain forensic teams to trace transactions for ongoing investigations.