A few years ago, the biggest threat to your crypto business was a bad line of code. A phishing email. A data breach. Today might be someone waiting for you outside your office.
In recent months, a disturbing trend has emerged across the crypto industry, one that’s deeply personal, shockingly violent and far harder to defend against than a cyberattack.
They’re called wrench attacks. Across the world, people associated with crypto wealth are being physically targeted. It’s happening to investors, founders, senior executives and team members working inside high-risk, high-value businesses.
As the co-founder of Capitalixe, I work every day with businesses that move huge volumes of digital money across borders. What I’m seeing is that we’re entering a new phase of risk, one that goes far beyond compliance, beyond cybersecurity, into the physical world.
Today, I want to talk about what these attacks really mean for the future of crypto and what we can actually do to protect ourselves, our teams, and the infrastructure we’re building.
What is a wrench attack?
A wrench attack is when someone uses physical force or intimidation to get access to your crypto. It doesn’t matter how secure your wallet is, how strong your encryption, or how many layers of multi-factor authentication you’ve set up. Because in a wrench attack, none of that matters.
The term actually comes from a webcomic that made a stark but simple point: no matter how strong your encryption is, someone could just threaten you with a wrench and get your password. What was once a dark joke is now an increasingly common reality.
We’re seeing cases where people are forced, under threat, to unlock their cold wallets or transfer crypto on the spot. Once it’s gone, there’s no chargeback. No bank to call. No undo button. That’s what makes it so terrifying for businesses and individuals alike.
Recent wrench attack incidents
To really grasp how serious wrench attacks have become, let me share a few recent stories. In May, in broad daylight in Paris, the daughter and grandson of a prominent crypto CEO were targeted. Three masked attackers tried to force them into a van at gunpoint. Luckily, the child’s father and some nearby people stepped in, and the attackers fled.
Here in the UK, wrench attacks aren’t new either. They date back to at least 2018. One of the country’s first reported crypto-related home invasions involved Danny Aston, a cryptocurrency trader in Moulsford, Oxfordshire. Four armed men broke into his home, tied up his partner, and forced Danny at gunpoint to transfer an undisclosed amount of Bitcoin.
Meanwhile, over in the US, law enforcement is taking a strong stand against these violent crimes. The Department of Justice and the US Attorney’s Office in D.C. just announced charges against 12 people linked to a huge racketeering conspiracy involving more than 263 million dollars in stolen cryptocurrency.
One of the most shocking cases happened in New York, where a 28-year-old crypto investor was reportedly kidnapped and tortured for weeks inside a luxury Manhattan townhouse. His captors were after his bitcoin password. Authorities say he was beaten, shocked, and threatened with harm to his family if he didn’t give it up.
These stories show a disturbing trend: crypto crime has become violent, personal, and all too real.
What preventative measures can you take against wrench attacks?
So, with wrench attacks becoming more frequent and brazen what can individuals and businesses do to protect themselves?
1. Prioritise privacy above all
One of the biggest mistakes I see, especially in the crypto space, is oversharing. People posting about their latest gains on social media, casually mentioning their holdings in conversations, sharing details with friends or family who might not be as discreet as they think. Every bit of information increases your risk.
Attackers look for targets that stand out, so keeping your financial life private is really important here. Remember, it’s okay to celebrate success, but not at the cost of your safety.
2. Strengthen physical security
We often focus so much on digital security, but physical security is just as important. That means installing security systems, alarms, cameras, and making your home a hard target. If you’re a public figure or run a well-known crypto business, speak to security experts who can help design a safety plan tailored to you. Think about simple habits too. Don’t advertise when you’re away, and be cautious about who you let into your personal space. Your home is your sanctuary, and it needs to feel that way.
3. Use Multisig wallets and trusted custody
Crypto technology can actually help protect you here if used wisely. Multisignature wallets require multiple people to approve transactions, so even if one person is forced to give up their key, the attacker can’t access everything. Cold storage, keeping keys offline in secure, physical devices, is another layer of safety you could add to your crypto wallet. They’re practical safety tools that make it physically impossible for any one person to lose control of everything in a moment of crisis.
4. Collaborate with trusted payment and banking partners
Here’s something many people overlook: your payment and banking partners can be your frontline defenders in cases like these. When you build strong, trusted relationships with them, you gain access to powerful tools that can spot unusual activity before it turns into a full-blown crisis. Maybe it’s a sudden, massive transaction or a strange login from somewhere unexpected. These are red flags that your partners can help you catch early.
But it’s not enough to just have these tools. No, you need to work closely with your partners to set up clear, rapid response plans. That way, if anything suspicious does happen, you can freeze transactions, alert the right people, and act fast.
The truth is, no one wants to think about these risks until it’s too late. So being proactive and making your payment and banking relationships part of your security strategy is one of the smartest moves you can make.
Final thoughts
If there’s one thing I want you to take away today, it’s that the world of crypto is changing, and fast. What used to be a battlefield fought mostly in code and algorithms is now spilling out into the streets.
So what do we do? We get smarter. We get more cautious. We stop sharing every detail of our lives online. We secure our homes, our teams, and our partnerships with the same intensity we protect our digital wallets. Let’s build this future safely. Together. Because protecting our digital wealth means protecting ourselves.
