French authorities are investigating a disturbing case where a former tax official allegedly abused state databases to identify cryptocurrency holders and pass their personal information to organized crime networks, leading to violent home invasions. The incident highlights growing security risks as tax authorities worldwide gain more visibility into crypto ownership.
The case centers on Ghalia C., a 32-year-old former French tax agent who was indicted in June 2025 and remained in custody for complicity in violence and criminal conspiracy. According to reports from Le Parisien, she used internal tax software to conduct unauthorized searches for addresses, income details, and family information of potential targets, including cryptocurrency investors. Judges ruled these searches could not be justified by her official role, which focused on corporate taxation.
This data leak is linked to a violent home invasion in Manosque, France, where three masked men broke into a residence on Chemin Champs de Pruniers, tied up a woman at gunpoint, slapped her, and stole a USB drive containing her partner's cryptocurrency data. The victim freed herself within minutes and contacted police. An investigation has been opened and entrusted to the local criminal investigation department and the regional directorate of the national police.
France has emerged as a European hotspot for violent crypto-related crime. Security researcher Jameson Lopp, CTO of Casa, documented over 70 crypto-related "wrench attacks" globally last year, with more than 14 occurring in France. Cybercrime consultant David Sehyeon Baek told Decrypt that France's combination of visible crypto wealth, growing digital asset expertise, and baseline criminal activity creates "fertile conditions" for such crimes.
The incident exposes systemic risks as tax authorities globally demand more crypto reporting. European citizens doubled their crypto exposure between 2022 and 2024, while authorities now require tying on-chain addresses to identities with full KYC data. France plans to tax crypto holdings above €2 million at 1% annually and requires reporting holdings above €5,000. Baek noted that crypto's global liquidity, 24/7 markets, and fast cross-border transfers make it an attractive target for criminals seeking "better margins" and "lower perceived traceability."
The data leak follows other security breaches affecting crypto users, including the recent exposure of data from Global-e, the payment processor for hardware wallet maker Ledger. The case raises concerns that tax databases containing detailed crypto ownership information could become targets for both cyber and physical attacks.
