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Whether or not this specific report of an incident actually happened or not, physical safety is important. There have been numerous incidents in the past. Lopp maintains a list:
That being said, ... most anyone with 4M worth of "crypto" knows not to carry it on their phone. I'm skeptical, and suspect this is a just rumor that was propagated, because it has sensational topics ... facial recognition, large amounts of money, robbery from an individual in a his car, etc. I need to see more, like a verification from the police or similar to deem this report credible.