Physical attacks against cryptocurrency owners are surging in 2025, with victims ranging from long-time Bitcoin investors to smaller retail holders.
Known as “wrench attacks,” these crimes involve kidnappings, assaults, and threats aimed at forcing people to reveal the private keys that control their digital assets.
Alena Vranova, founder of SatoshiLabs, told attendees at the Baltic Honeybadger 2025 conference in Riga that such incidents are now happening every week somewhere in the world.
“Every week, there is a Bitcoiner, at least one in the world, who gets kidnapped, tortured, extorted, and sometimes even worse.”
Vranova warned that these crimes are not confined to wealthy veterans of the industry, citing cases where victims were targeted for as little as $6,000 in crypto, and even murders over $50,000 worth of digital assets.
Alena Vranova addressing the audience at the Baltic Honeybadger 2025 conference in Riga.
Industry data suggests 2025 could be the most dangerous year on record for such crimes, with the number of reported cases already approaching past peaks and projected to potentially double by year’s end.
Vranova pointed to large-scale breaches of personal data from centralised crypto platforms as a major driver of the rise in physical attacks.
“We currently have more than 80 million Bitcoiner and crypto user identities leaked online; 2.2 million out of those contain home addresses.”
Centralised exchanges and wallet providers, bound by Know Your Customer (KYC) rules, store sensitive information including names, phone numbers, identification details, and addresses.
When this data is stolen or sold, it becomes a “shopping list” for criminals looking to identify and locate potential victims.
In May, Coinbase reported a breach affecting some customers’ personal information, including addresses.
The following month, Cybernews revealed that databases containing over 16 billion login credentials from major platforms like Apple, Facebook, and Google were exposed online — potentially linking crypto owners to identifiable real-world details.
Cybercriminals are now combining stolen personal information with blockchain analysis tools to pinpoint wallets holding significant amounts of cryptocurrency.
Once identified, victims may face targeted phishing campaigns, SIM-swapping, or, in severe cases, physical coercion to obtain their private keys.
The problem is amplified during bull markets, when rising crypto prices draw in less security-conscious investors.
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Vranova said,
“What seems to be a problem only for Bitcoin OGs is not really the case. We have seen cases of kidnappings for as little as $6,000 worth of crypto.”
In response, both prominent figures in the crypto space and everyday investors are taking greater precautions.
This includes hiring private security, improving home defences, avoiding public discussions about holdings, splitting assets into multiple secure wallets, and using privacy tools to obscure wallet addresses.
Operational security experts recommend maintaining strong password hygiene, enabling multi-factor authentication, monitoring for exposure in data breaches, and staying vigilant for suspicious contact attempts.
Coinlive believes the sharp rise in violent attacks shows that the dangers of owning crypto go far beyond just digital theft.
As valuations climb and more personal data leaks onto the internet, the industry faces a dangerous convergence of wealth visibility and physical vulnerability.
Without urgent changes in how personal information is collected, stored, and protected, the same factors fuelling market optimism may also be driving a darker economy of targeted crime.
The industry's ability to protect its own will depend on how quickly it can adapt.
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