Hunting crypto owners: Why criminals have gone offline

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Hunting crypto owners

The weakest link has changed

Physical attacks targeting cryptocurrency holders increased sharply in the first half of 2026, according to a new report by cybersecurity company CertiK. The firm documented 52 cases of so-called wrench attacks against crypto holders, up 33% from the same period a year earlier. Reported financial losses reached $124.1 million, compared with $10.5 million in the first half of 2025.

Unlike traditional cyberattacks, wrench attacks rely on intimidation rather than technical skill. Victims may be threatened, assaulted, kidnapped, or forced to unlock devices and authorize cryptocurrency transfers.

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The figures cover only publicly documented cases, so they are unlikely to reflect every incident worldwide. Yet the incidents themselves are not new. Security researchers have been documenting physical attacks against cryptocurrency holders for years.

Not a new problem

For years, security researcher and Casa co-founder Jameson Lopp has maintained a public database documenting kidnappings, robberies, home invasions, and extortion attempts involving cryptocurrency owners around the world.

The database suggests these incidents remain relatively rare compared with the hundreds of millions of people who own digital assets. However, Lopp notes that many attacks are never reported publicly, making their true scale difficult to measure.

The trend nevertheless appears to be evolving. CertiK found that home invasions accounted for about 41% of recorded physical attacks during the first half of 2026, while Europe experienced the largest concentration of cases. France alone accounted for more than 30 recorded incidents, prompting authorities to strengthen security measures for crypto entrepreneurs after several high-profile kidnappings.

Why attack people instead of wallets?

Modern crypto security has become much harder to defeat. Hardware wallets, multisignature protection, better custody solutions, and stronger exchange security have significantly reduced many of the technical vulnerabilities that dominated the industry's early years.

That may be changing criminals' calculations. Instead of trying to break into increasingly well-protected systems, attackers may find it easier to pressure the person who controls the private keys.

“As the security of protocols and wallets tends to improve, the threat migrates toward the human link,” CertiK researchers wrote in their report.

The economics of such attacks are relatively straightforward. Unlike money held in a bank account, cryptocurrency can often be transferred immediately by someone controlling the private keys. Once a blockchain transaction is confirmed, reversing it is usually impossible.

“Criminal groups already comfortable with using violence to achieve their goals were always likely to migrate to crypto,” Phil Ariss, Director of UK Public Sector Relations at TRM Labs, told the Associated Press.

Who is actually at risk?

Headlines about kidnappings and violent robberies can make crypto ownership appear unusually dangerous. The available evidence paints a more nuanced picture.

Most reported victims have been exchange executives, founders, investors, traders, or individuals publicly associated with substantial digital wealth. In some cases, criminals targeted relatives because they believed family members could provide access to cryptocurrency holdings.

Public visibility appears to be one of the biggest risk factors. Wallet addresses, social media posts, interviews, conference appearances, or data leaks can all help connect significant crypto assets to a real-world identity.

For the average investor, the risk remains extremely low. With hundreds of millions of people worldwide owning cryptocurrency, confirmed physical attacks represent only a tiny fraction of users. However, the likelihood increases when large holdings become publicly known.

Privacy as part of security

For years, security advice focused on hardware wallets, strong passwords, and protection against phishing. Those measures remain essential, but experts increasingly argue that privacy deserves equal attention.

That does not mean disappearing from the internet. Instead, it means avoiding publicly disclosing wallet balances, trading profits, or personal information that links digital assets to a home address or daily routine.

Security professionals also recommend separating long-term holdings from everyday spending wallets, using multisignature protection for larger balances, and regularly reviewing what personal information is publicly available online.

The goal is not secrecy for its own sake. It is reducing the amount of information that could make someone an attractive target.

Security now extends beyond the blockchain

Physical attacks do not mean cryptocurrency has become uniquely dangerous. Wealthy individuals have long faced risks ranging from burglary to kidnapping, regardless of whether their assets were held in cash, gold, or company shares.

What has changed is the way digital wealth is stored. Self-custody gives investors direct control over their assets, but it also places more responsibility on the owner. Protecting cryptocurrency is no longer only about defending against hackers. Increasingly, it also means protecting the person behind the wallet.

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