PHYSICAL ATTACKS AGAINST CRYPTOCURRENCY HOLDERS RISE AS CRIMINALS TARGET PEOPLE INSTEAD OF DIGITAL SYSTEMS

Physical attacks targeting cryptocurrency holders rose during the first half of 2026 as criminals used violence, kidnapping, intimidation and threats against victims and their families to obtain access to digital assets.

These incidents, commonly referred to within the cryptocurrency industry as “wrench attacks,” differ from conventional cyberattacks because the primary vulnerability is not a software flaw, compromised exchange or fraudulent website. The attackers target the person who controls the wallet, private key, password or recovery information needed to authorize a cryptocurrency transfer.

Blockchain security audit company CertiK documented 52 wrench attacks worldwide through June 2026, representing a 33 percent increase from the 39 publicly identified incidents recorded during the first half of 2025.

CertiK defines a wrench attack as an incident of physical coercion in which criminals use violence, intimidation or credible threats to force a person to transfer digital assets, provide private keys, unlock a cryptocurrency wallet, disclose credentials or pressure someone else into cooperating.

The reported incidents fall within established categories of violent crime, including home invasions, robberies, carjackings, abductions and, in rare cases, murder. Cryptocurrency changes what the attackers seek and how the stolen value can be transferred, but the physical violence remains comparable to other crimes committed for financial gain.

CertiK cautioned that the recorded figures probably understate the true number of incidents. Some victims may avoid reporting an attack because they fear additional violence, public exposure, legal scrutiny or the disclosure of their cryptocurrency holdings. Other cases may remain confidential while authorities conduct investigations.

The difference between the number of attacks and the reported financial exposure was substantial. CertiK identified approximately $124 million connected with wrench attacks during the first half of 2026, compared with $10.5 million during the corresponding period in 2025.

The $124 million figure should not be interpreted as the amount criminals successfully retained. CertiK said the total represents the broader financial scale of the incidents and may include assets subjected to coercive demands along with funds that were frozen, recovered or prevented from reaching the attackers.

Cryptocurrency holders can be targeted through information obtained from social media, public business activity, data breaches, personal relationships or visible displays of wealth. A criminal does not necessarily need the technical ability to compromise a wallet if the person controlling it can be forced to authorize a transfer.

The danger can extend beyond the owner of the assets. Spouses, parents, children, employees, drivers, assistants and close friends may be used as proxy victims when attackers believe threats against them will force the primary target to comply.

“Attackers do not need direct access to the primary holder if they can threaten a spouse, parent, child, employee, driver, assistant, or close friend,” CertiK’s report stated. “Proxy victims often have weaker operational security, more predictable routines, and less training than the primary target.”

This method allows criminals to work around security measures focused entirely on the digital wallet. Hardware devices, offline storage, complex passwords and multifactor authentication can reduce the risk of remote compromise, but those protections do not prevent an attacker from physically compelling the owner to unlock a device or provide the required information.

Documented incidents have included the kidnapping of a mother and child in France during April 2026, a home invasion in Minnesota in 2025 and a 2024 Connecticut case involving a carjacked Lamborghini. These cases demonstrate that wrench attacks are not confined to one country or one type of cryptocurrency holder.

Self-custody can intensify the consequences of physical coercion because the owner directly controls the wallet and transaction authorization. Unlike assets maintained through a bank or another financial intermediary, self-custodied cryptocurrency may not have an institution positioned between the victim and the transfer.

Researcher Lukasz Olejnik warned in January that offline wallets stored at home can place the full security responsibility on the holder. If a criminal obtains the device, recovery phrase, private key or compelled authorization, there may be no intermediary available to pause the transaction before the assets move.

“Under self-custody, the user is on their own,” Olejnik wrote.

A completed cryptocurrency transfer can move across borders without the physical transportation required for cash, jewelry or other property. That feature can make digital assets attractive to violent criminals seeking immediate access to high-value holdings.

The transparency of a public blockchain does not automatically prevent theft. Transactions may be visible after they occur, but identifying the individual controlling a receiving address, stopping the transfer or recovering the assets can require cooperation among investigators, cryptocurrency platforms and other entities. Funds can also be divided among multiple addresses after leaving the victim’s control.

The rise in wrench attacks demonstrates the limits of treating cryptocurrency security solely as a cybersecurity problem. Strong passwords, hardware wallets and offline storage remain important, but personal privacy, residential security, family awareness and control over publicly available financial information also affect the threat environment.

The risks are not limited to wealthy public figures. Criminals can act on inaccurate information, exaggerated claims or outdated records and may target someone they merely believe controls valuable digital assets. A person can face physical danger even when the assumed cryptocurrency holdings do not exist or are worth far less than attackers expect.

Publicly displaying wallet balances, investment gains, expensive purchases or identifying information can make it easier for criminals to connect digital wealth with a physical person and location. Information shared by relatives, employees or associates can create similar exposure without the wallet holder directly disclosing it.

Security planning must also account for coercion involving other people. Protecting the primary holder’s credentials provides limited protection if an attacker can locate family members, identify daily routines or threaten an associate who has no role in managing the assets.

The increase documented by CertiK does not establish that physical coercion has replaced online cryptocurrency theft. Hacks, scams, phishing and fraudulent investment operations remain major threats. The findings show that criminals are also pursuing a direct route by targeting the individuals behind the wallets.

Wrench attacks expose a central security weakness within self-custodied digital assets: control belongs to the person holding the credentials, and that person can become the target. When criminals cannot defeat the technology, they may attempt to overpower the human being responsible for operating it.

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