The cryptocurrency landscape is witnessing a disturbing trend: a surge in "wrench attacks" targeting crypto holders, characterized by increasing violence. These attacks, where criminals use physical force or intimidation to coerce victims into surrendering their crypto assets, are becoming more frequent and severe globally.
The term "wrench attack" originates from the idea that even the most sophisticated digital security measures can be bypassed by physically threatening someone to reveal their private keys. Unlike cyberattacks that target digital vulnerabilities, these attacks exploit human behavior and physical security.
In 2025, the rise in wrench attacks has been alarming, with reports indicating a doubling in the number of physical assaults on crypto holders compared to previous years. Ari Redbord, Head of Global Policy and Government Affairs at TRM Labs, stated that 2025 was a record-breaking year with approximately 60 reported cases. However, the actual number is likely much higher, as many incidents go unreported due to victims' hesitation or the misclassification of these crimes as ordinary robberies.
These attacks are not limited to wealthy crypto executives; they increasingly target smaller crypto holders, families, and everyday individuals. The rise in attacks on smaller holders is expected to continue as crypto adoption grows and the physical infrastructure for crypto transactions, such as ATMs and in-person exchange offices, expands.
Recent incidents illustrate the brutality of these attacks. In one case, the daughter and grandson of a crypto CEO were attacked in Paris. Masked assailants attempted to kidnap them at gunpoint. In another instance, Ledger co-founder David Balland and his partner were kidnapped from their home in France, with the attackers demanding a ransom and severing one of Balland's fingers. A home invasion in San Francisco saw a perpetrator disguised as a deliveryman tie up a resident and steal over $11 million in Bitcoin and Ethereum. Another incident involved the kidnapping of an entire family in Minnesota, where the perpetrators forced them to transfer $8 million in cryptocurrency.
The motives behind these attacks are multifaceted. The increasing value of cryptocurrencies, the difficulty in tracing and recovering stolen crypto assets, and the relative ease of transferring funds contribute to the appeal of these crimes. As online crypto trading services enhance their digital security, malicious actors are shifting their focus to individual wallet holders, employing violence and coercion to gain access.
Law enforcement agencies are adapting to this new threat, with blockchain analysis and cooperation from crypto platforms playing a crucial role in investigations. However, experts warn that as law enforcement adapts, criminal groups may increasingly outsource violence to local street gangs.
The psychological impact on victims of wrench attacks is significant, leaving them traumatized and anxious. Community support and understanding the psychological fallout are essential for helping individuals heal.
To protect themselves, crypto holders are advised to implement comprehensive security measures, combining digital and physical protection. These measures include using multi-signature wallets, securing hardware wallets and seed phrases in fireproof safes, enhancing home security with surveillance cameras and alarm systems, and maintaining a low profile by avoiding public displays of crypto wealth.
