The episode is Shut Up and Dance, where a kid gets blackmailed into committing (more) crimes because a hacker had evidence of him with CSAM .
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Dude could've just said "the evidence is AI generated" and ignored it...
"they were children!!! CHILDREN!!! How- how could you."
such a classic episode
police were alerted to the plot by one of the teens’ mothers... Both teens are now out on $50,000 bail with ankle monitors.
That alert cost mom dearly.

I read the article and don't understand what a physical crypto asset is that would require theft by breaking into the house. I thought the whole point of crypto was it is digital
Data is stored on a hard disk. You can steal those.
However, this sounds more like the "transfer me your crypto or I'll bash ya" kind of old school thuggery.
Anyone with a crypto wallet on a hard disk would have it encrypted, backed up, and paasworded too. Stealing the physical disk would only work if you also had means to break into it, and transfer the funds faster than the owner can do the same from their backup.
Some people print their Bitcoin wallet recovery phrase onto a metal sheet, so they've got a fire and error proof way to recover the wallet. That would be easy to steal.
I store it up my ass so good luck
We'll x-ray your ass.
Nice one.
On an unrelated note I've bought you this drink ...don't worry about the rohypnol aftertaste. Anyways drink up! {reaches for the lube}
Another one, eh? Which one came true this time... Let's see. Oh that one. Yeah that makes sense, coercing people over the Internet is apparently super easy, barely an inconvenience. It's like that 764 network that had kids do unspeakable shit on camera, there is good precedent.
Honestly if you're dumb enough to invest in crypto then you've kinda got it coming.