NEW YORK, USA— What began as a digital revolution has now taken a darker, more physical turn. As cryptocurrency adoption grows, so too does a disturbing new form of theft, one that trades phishing emails for fists and brute force. Known as “wrench attacks,” these violent crimes are shaking the global crypto community.
Just last month, in the heart of an upscale Manhattan neighbourhood, a 28-year-old man from Italy fled an eight-bedroom townhouse in broad daylight and flagged down a traffic officer. His story shocked police: he had been held captive for several weeks by two men attempting to extract access to his cryptocurrency holdings. Tortured, beaten, and at one point dangled off a five-story ledge, he was coerced to surrender his Bitcoin wallet credentials.
The motive was as clear as it was terrifying: access to potentially millions of dollars in digital assets.
Crypto Riches, Real-World Risks
As the value of digital currencies like Bitcoin continues to rise and more investors store substantial wealth in cold wallets or mobile apps, they’ve become prime targets for criminals no longer content to operate solely behind screens. These crimes mark a chilling evolution of cryptocurrency theft from online scams to physical coercion.
Cases similar to the New York incident have surfaced across the globe. In Canada, France, the U.K., and multiple U.S. states, reports have emerged of home invasions, kidnappings, and prolonged captivity, all designed to extract private keys, passwords, and recovery phrases.
Experts in the blockchain security industry refer to these as “wrench attacks,” a term that originated from a meme in which a thief simply uses a wrench to threaten someone into giving up their crypto wallet password. While the term once represented a hypothetical danger, the recent surge in real-life violence shows it’s no longer a joke.
Why the Surge?
Nova Safo of Marketplace spoke to Ari Redbord, global head of policy at blockchain intelligence firm TRM Labs, to better understand the rising trend. According to Redbord, the surge in violent attacks is a direct result of how hard it has become to steal cryptocurrency through traditional cybercrime channels.
“Digital assets are increasingly traceable on public blockchains. Law enforcement and analytic firms have gotten better at following the money,” Redbord said. “So we’re seeing some criminals return to old-school tactics physical threats and violence to get around the tech barriers.”
Blockchain’s transparency, once seen as a risk to privacy, has actually helped catch fraudsters and recover stolen funds. But this growing sophistication in digital tracking is now pushing desperate actors into more violent methods, creating a new and terrifying dynamic.
Targeting the Vulnerable
Victims of wrench attacks are often chosen not only for their wealth but also for their perceived isolation or vulnerability. Cryptocurrency holders who flaunt their success online, travel frequently, or manage their own private keys without third-party security are particularly at risk.
The Manhattan victim, for instance, was a visitor from Italy unfamiliar with his surroundings, likely without close support, and a soft target in the eyes of his captors.
While cold wallets and private key storage are often recommended for maximum crypto security, they also place the burden entirely on the user. If someone is physically forced to unlock their wallet or hand over recovery phrases, the best digital security protocols become irrelevant.
Protecting What’s Yours in a New Crypto Landscape
The rise of wrench attacks is prompting experts to urge more caution in both online and offline behaviour. Redbord emphasised the importance of discretion: “Don’t publicise large crypto holdings. Limit who knows what you have and where you store it. Consider custody solutions that add layers of protection or delays in asset transfer.”
Additionally, he recommends multi-signature wallets or time-locked vaults that prevent immediate asset withdrawal even if access is compromised. These features can deter attackers by making immediate theft impossible and buying victims time to alert authorities.
As cryptocurrency blurs the line between finance and personal identity, investors must not only protect their digital assets from hackers but also shield themselves from very real physical threats.
Digital Riches, Real-World Threats: Why Crypto Security Must Extend Beyond the Screen
The wrench attack phenomenon is a stark reminder that crypto crime is no longer confined to cyberspace. As the wealth contained in digital wallets grows, so too do the lengths to which criminals will go to steal it. For today’s crypto holders, security must go far beyond passwords and firewalls; it now includes personal safety, vigilance, and a renewed awareness that digital riches can invite very real-world danger.
