Crypto Wrench Attacks Surge 90% in 2025 Amid Data Breaches and Extortion Risks

Violent "wrench attacks" on cryptocurrency holders have surged alarmingly in 2025, according to Alena Vranova, founder of hardware wallet maker SatoshiLabs. Speaking at the Baltic Honeybadger 2025 conference in Riga, Latvia, Vranova warned that these attacks—characterized by kidnappings, physical assaults, and extortion to extract private keys—are occurring at an unprecedented rate. She noted that at least one Bitcoiner is subjected to such crimes every week, regardless of their wealth, with some cases involving as little as $6,000 in crypto and others leading to murder for as much as $50,000 in digital assets [1].

The rise in physical attacks is closely linked to a surge in data breaches from centralized services, particularly cryptocurrency exchanges and wallet providers that store sensitive user information under Know Your Customer (KYC) regulations. Vranova revealed that over 80 million crypto user identities are currently exposed online, with 2.2 million including home addresses, making it easier for criminals to identify and target victims [1].

Recent breaches have exacerbated the problem. In May 2025, U.S.-based exchange Coinbase confirmed a data breach involving customer names and personal information, including addresses. A month later, cybersecurity publication Cybernews uncovered databases exposing over 16 billion stolen credentials from major tech companies like Apple, Facebook, and Google. These leaks provide criminals with critical information that can be cross-referenced with blockchain data to identify wealthy crypto holders [1].

Once identified, victims may be subjected to phishing, SIM-swapping, or, in the most severe cases, physical violence. Vranova emphasized that as the bull market attracts more inexperienced investors who may not practice strong operational security (opsec), criminal organizations are capitalizing on the situation to expand their operations through theft and extortion [1].

Industry data supports the gravity of the situation. According to Chainalysis, the number of wrench attacks so far in 2025 has nearly matched the worst year on record. If the trend continues, the number could potentially double by year-end [1].

In response to the rising threat, the crypto community is taking measures to enhance physical and digital security. High-profile investors are hiring private security, reinforcing home protections, and using privacy tools to mask their holdings. Everyday investors are also adopting best practices such as reducing public exposure, using non-custodial wallets, and splitting assets across secure locations [1].

Security experts stress the importance of opsec hygiene, including unique passwords, multi-factor authentication, and regular checks for data leaks. As the value of digital assets continues to rise, the risk of targeted attacks is expected to follow, making robust security a critical concern for all crypto holders.

The situation highlights a broader issue within the crypto ecosystem: the tension between regulatory compliance and user privacy. While KYC laws aim to prevent money laundering, they also create vulnerabilities by mandating the storage of sensitive personal information. As long as this data remains centralized and accessible, the risk of wrench attacks and other forms of exploitation will persist [1].

Source:

[1] Bitcoin exec warns violent wrench attacks on crypto holders have increased alarmingly in 2025

https://coinmarketcap.com/community/articles/689935fd1f38760f9eb4051c/