Crypto-related crimes are no longer confined to the digital realm—they are increasingly threatening people in real life. According to a recent analysis by Chainalysis, global crypto theft losses reached $2.8 billion in the first half of 2025, nearing the total loss amount of $3.4 billion recorded in all of 2024. Notably, over $2.17 billion of this year’s losses stemmed from platform hacks, already surpassing last year’s total.
What’s more alarming is the shift from cyber attacks to violent, real-world assaults targeting individual wallet holders. So-called “wrench attacks”—where victims are physically coerced into giving up their crypto assets—are on the rise. In January, a co-founder of the hardware wallet company Ledger was reportedly kidnapped in France. Another case in May involved a crypto entrepreneur’s father who was abducted and had a finger severed for ransom.
The number of such violent incidents is also climbing. At least 29 cases of kidnapping or bodily harm related to crypto theft have been reported so far this year, nearly matching the total of 35 reported in all of 2021. Criminals are increasingly targeting individuals and their families, viewing them as easier marks than increasingly fortified exchanges.
Experts warn that traditional security methods are no longer enough. “Never store your recovery phrases or wallet credentials on a single device,” one blockchain security analyst advised. “Avoid flaunting your crypto holdings online or disclosing them to others.” Due to the nature of blockchain, tracing transactions may be possible, but recovering stolen assets or catching perpetrators remains difficult.
As the debate around crypto regulation continues, it’s clear that physical threats are becoming a real part of the risk landscape. Protecting “invisible assets” now requires tangible, proactive defense measures in the physical world—not just digital ones.
