Crypto Kidnappings Are on the Rise. Should Investors Be Worried?

  • June 24, 2025
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Crypto Kidnappings Are on the Rise. Should Investors Be Worried?

Key Points

Crypto kidnappings and so-called wrench attacks have been in the news recently. In one high-profile case, kidnappers in France abducted Ledger co-founder David Balland and his wife and demanded a significant crypto ransom for their release.

Closer to home, criminals allegedly held and tortured an Italian entrepreneur for 17 days in a Manhattan apartment. Sadly, it isn't a new phenomenon. Last year, a Florida resident was sentenced to 47 years for a series of crypto-related home invasions that started in 2022.

However, these crimes are on the rise. And the Coinbase data breach that revealed the home addresses of over 69,000 customers does not help investors feel safe.

The rise of wrench attacks

According to Bloomberg, there have been 23 attacks on crypto holders this year, up from just six in the same period last year. The name "wrench attacks" comes from a comic strip that suggested complex encryption wouldn't help against criminals who drugged and beat their victims to get their passwords.

Bitcoin (CRYPTO: BTC) has soared to record highs this year. Not only are digital currencies becoming more valuable, but they're also more mainstream. TRM Labs Director Phil Ariss says that makes it more attractive to criminals, including violent ones. "As long as there's a viable route to launder or liquidate stolen assets, it makes little difference to the offender whether the target is a high-value watch or a crypto wallet," he said. TRM Labs specializes in analyzing blockchain data to fight fraud and financial crime.

Why thieves are targeting crypto investors

One key reason for the rise in attacks on cryptocurrency holders is that the criminals think crypto transactions are both anonymous and irreversible. The transfer takes place instantly. And, unlike a bank transaction, if someone hands over their crypto keys under duress, there's a perception that transfers can't be traced. That's not actually entirely correct. Authorities are getting better at tracking and prosecuting these types of illicit transactions. Sadly, that message hasn't gotten through to the thieves.

Another crypto-specific risk is that potential attackers can use peer-to-peer (P2P) transactions to identify crypto holders. The nature of P2P trading means that individuals talk directly to one another, which can expose their personal information.

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