WonderFi CEO Reports Safety After $1M Ransom & Harrowing Kidnap

Dean Skurka, CEO of Toronto-based crypto firm WonderFi Technologies, was reportedly abducted during rush hour in downtown Toronto on 6 November and released after paying a $1 million Canadian Dollar ransom electronically.

According to Toronto Police, Skurka was forced into a vehicle near University Avenue and Richmond Street W. before being later found unharmed in Centennial Park, Etobicoke.

In an email, Skurka confirmed his involvement in the incident, assuring that he is safe and that WonderFi's funds and data remain unaffected.

He stated in the email:

"The safety and security of all of WonderFi's employees are paramount. Client funds and data remain safe, and were not impacted by this incident."

The police investigation is ongoing, with no additional details currently released.

Neither Skurka nor WonderFi has publicly addressed the incident on social media or their website.

Growing Trend of Crypto Abductions

The abduction of Skurka highlights a troubling rise in kidnappings targeting crypto executives and influencers, often aimed at extorting large sums of money.

Jameson Lopp, co-founder and chief security officer of Casa, a firm dedicated to cryptocurrency protection, has tracked physical attacks intended to steal digital assets for nearly a decade.

According to Lopp, Skurka's case marks the 171st known incident involving violence to obtain cryptocurrency.

He said:

"As the price goes up, more awareness of the space permeates throughout society and as a result, more criminally minded people decide they want to try to figure out what the ROI of executing a physical attack against a known crypto holder is."

Such incidents tend to increase alongside Bitcoin's market value, as cryptocurrency's unique nature can make it a more attractive target for criminals compared to traditional thefts, like bank robberies.

He added:

"They [cryptocurrencies] are incredibly easy to transport, incredibly easy to take possession of from someone in comparison to a bank or an armoured truck…The average crypto person, even early adopters who may be multi-millionaires, tend not to have really great physical security, and often they don't have great operational security or privacy."

Most victims, he noted, are not high-profile figures but rather everyday individuals.

He continued:

"This particular incident is not something that many people have to worry about unless they're a high profile figure. But you know, what I see in the space, is even a lot of high profile figures, I would say, do not have the level of security and privacy that they should to be commensurate with their risk profile."

Skurka's kidnapping is unlikely the last.

WonderFi CEO Abducted for His Wealth?

WonderFi, a leading publicly traded crypto firm on the Toronto Stock Exchange (ticker: WNDR) and backed by Shark Tank co-host Kevin O'Leary, is a notable player in Canada's crypto industry with a $75 million market cap, according to Google Finance.

Specialising in the development, incubation, and investment in centralised exchanges (CEX) and decentralised protocols, WonderFi's key products include its WonderFi layer 2 blockchain and the WonderFi Wallet, a popular non-custodial wallet.

The alleged kidnapping of its CEO occurred just as WonderFi announced strong third-quarter earnings, with a 153% increase over the prior year's third quarter, generating $41 million CAD in revenue over the past nine months.

On 30 October, WonderFi also disclosed $1.35 billion in assets under custody.

Its portfolio includes Coinsquare, SmartPay, Tetra Trust, and Bitbuy—a crypto exchange where Skurka previously held the position of President from January 2018 to July 2023.

Who is Dean Skurka?

Dean Skurka, President and CEO of WonderFi, has been pivotal in the company’s ascent, stepping in as interim CEO in 2022 before assuming the role permanently in July 2023.

In his leadership role, Skurka shapes WonderFi's strategic direction and manages its operations.

Previously, he was a key figure at Bitbuy, a leading Canadian cryptocurrency exchange, where he played a central role in scaling operations.

His expertise spans regulatory strategy, mergers and acquisitions, and financial management.

Skurka holds a Bachelor of Commerce in finance with a minor in accounting from Toronto Metropolitan University (formerly Ryerson University).