London’s Crypto Thefts Surge: Victims Lose £50,000+ to Phone Hackers

- Robbers exploit stolen smartphones to empty victims’ crypto wallets. - Police struggles leave victims largely without recourse. On September 21, 2025, the Financial Times reported a surge in crypto thefts across London. Criminals physically steal phones and drain crypto wallets within hours. Victims like Christian d’Ippolito and Neil Kotak have lost tens of thousands of pounds. These incidents expose significant challenges in crypto security, victim restitution, and law enforcement's ability to address this growing form of digital crime. Thieves target individuals, often in public areas. They steal their phones and quickly access crypto wallets on platforms like Coinbase and Binance. In one notable incident, four men stole Christian d’Ippolito’s phone near Old Street, and he reported losing nearly £40,000. In another case, perpetrators asked Neil Kotak for his phone number. During the conversation, they grabbed his device and stole £10,000. Criminals have reportedly bypassed security measures, including resetting Apple IDs, to gain access to funds. Many describe law enforcement’s response as ineffective. Scott Pounder, a former Metropolitan Police officer who now works with Token Recovery, stated that he reported 20 such cases to Action Fraud. However, the agency has not investigated any of them. Although investigators can often trace stolen cryptocurrency, they rarely investigate these cases. Phil Ariss, a former City of London Police officer and a current blockchain intelligence expert at TRM Labs, noted that when police do investigate crypto theft, their efforts are effective. However, the police give no attention to the majority of cases. Victims receive inconsistent restitution. For example, Coinbase reimbursed Neil Kotak for part of his stolen funds without explanation. However, he has not recovered the money lost from his Binance account. Another unidentified victim shared a similar experience of partial reimbursement. This inconsistency underscores significant gaps in consumer protection mechanisms within the crypto ecosystem. The Metropolitan Police advises users to enable anti-theft features, use strong passwords, and exercise caution in public spaces. Companies like TRM Labs provide additional resources. For instance, the website chainabuse.com allows victims to report and flag stolen crypto. This effort helps prevent criminals from cashing out. Nevertheless, the surge in physical crypto theft in London reflects a growing vulnerability for cryptocurrency users. It also highlights the difficulty law enforcement faces in tackling this evolving crime.