Crypto “Wrench Attacks” Surge as Violent Cryptocurrency Theft Reaches $30 Million

Unlike money held in traditional bank accounts, cryptocurrencies are often controlled directly by their owners through digital wallets or physical storage devices.

For criminals, the combination of speed, anonymity and irreversible transactions can make cryptocurrency holders an attractive target.

Violent Crypto Robberies Are Increasing

Although most cryptocurrency theft occurs online through hacking and fraud, Chainalysis researchers say physical “wrench attacks” have proliferated in recent years.

According to their research, $30 million (£22.6 million) was stolen in violent cryptocurrency robberies up to June this year. That puts 2026 on track to become the worst year on record for violent crypto attacks. The research also found that home break-ins have increased this year.

The United States, Brazil and Thailand are among the hotspots. France has recorded the most attacks so far, apparently following a data breach at a tax office that may have helped criminals identify wealthy cryptocurrency holders.

“The physical security assumptions that protect traditional assets, such as bank vaults and armoured vehicles, do not automatically apply to cryptocurrencies. In many cases, holders store their assets in relatively low-security settings, such as self-custody wallets, which can be compromised without institutional gatekeepers getting in the way,” the researchers said in their report.

Crypto Investor Loses Everything After Attack

James said he became an amateur cryptocurrency investor in 2020. By 2023, he had made enough money to quit his job and trade full-time.

He has now lost everything and is trying to return to a traditional job.

Police have not yet identified the attacker. Crimestoppers is offering a £10,000 reward for information that helps make progress in the investigation.

The charity’s Alan Edwards hopes people will come forward with information about the three attackers, the driver who was parked outside without a face covering, or the man who was on the phone.

“These criminals are clearly serious and part of some type of organised crime group,” he said.

“People may be afraid to give us information, but we are independent from the police and keep people completely anonymous.”

Police Appeal for Information

All three attackers appear to be in their late teens or early 20s. One is described as a Black man with a scar under his left eyebrow.

James said there was little hope of recovering the stolen funds, but he hoped those responsible would be brought to justice.

He also hopes his experience will serve as a warning to other cryptocurrency holders.

“They threatened my wife and my baby,” he said. “People need to understand that these risks are real.”