Physical crypto robberies hit new highs as criminals target self-custody

Violent “wrench attacks” – robberies, kidnappings and home invasions intended to coerce transfers or reveal seed phrases – gained traction alongside market capitalization, according to analyses that correlate attack frequency with crypto valuations. Cointelegraph’s roundup notes that regressions against total market cap explain a large share of variance in reported incidents, indicating price upswings draw more physical crime.

Researchers and security firms define a wrench attack as theft by real-world coercion rather than a technical breach. The method relies on intimidation or violence to compel access to wallets, private keys or exchange accounts, making offline operational security as important as digital hygiene. Hardware-wallet educators and compliance vendors describe the same pattern: criminals target people, not protocols.

Recent tallies suggest 2025 set a new high. A survey of incidents compiled by longtime Bitcoin security advocate Jameson Lopp counted roughly 70 physical assaults on crypto holders this year, the largest in the database’s history, while mainstream features documented a rise in kidnappings and home invasions targeting investors and founders.

Security analysts cite several structural drivers. The irreversibility of on-chain transfers means coerced payments are difficult to claw back; the public visibility of wealth within crypto communities can expose targets; and personal data is easy to harvest from social media and breached databases, enabling doxxing and surveillance of routines. These factors make holders – and sometimes their families – attractive targets for extortion.

Experts also warn that physical crime is adapting to self-custody practices. Attackers increasingly demand real-time transfers to exchange accounts or to fresh addresses they control, rather than asking only for seed phrases, to bypass time-locks or multisig setups. Academic work on physical attacks against cryptocurrency users highlights how coercion undermines digital-only defenses and calls for threat models that treat home and travel security as part of wallet design.

Background: the “$5 wrench attack” label – a reference to using a cheap tool instead of sophisticated malware – has been part of crypto vernacular for years, but the latest reporting emphasizes severity as well as frequency. Educational resources stress operational basics: keep balances and holdings private; split funds and use decoy accounts; enable multisig and time-locked arrangements; and practice emergency procedures that minimize exposure under duress.