Revolut Hack Exposes Risks of Holding Crypto

A recent data breach at Revolut has reignited concerns about the traceability of digital assets and the risks associated with holding cryptocurrency. Hackers claim to have stolen nearly 700 'crypto whale' accounts and are demanding a $2m ransom in XMR, a notoriously hard-to-trace cryptocurrency.

Revolut said it had received no direct contact from the hacker group, iamnotavillain, but has been ordered to pay the ransom or risk having all the data sold. This attack on Revolut comes just days before the bank announced its bid for a dual stock market listing in New York and London.

The incident highlights the enduring appeal of cryptocurrency among criminals, who value its liquidity and anonymity. Physical attacks on crypto-holding individuals have increased by 32% year on year, to 50 globally, with extreme examples including armed men breaking into homes to demand cryptocurrency.

Consumer protections are attempting to keep up with the growth in cryptocurrency fraud, which has grown significantly since 2023, from around £59m to £153m. From October next year, crypto firms will be required to apply for full authorisation from the Financial Conduct Authority (FCA) for licences similar to those needed by banks.