Physical attacks against crypto founders and investors is about to be the worst on record, warns crypto security firm Chainalysis in its 2025 mid-year crypto crime update report.
In the first half of 2025, 29 different attacks were carried out. If this pace continues, 2025 could double the 35 record of physical attacks seen in 2021 — at the midst of the last crypto cycle.
The reason? The skyrocketing Bitcoin price, which has triggered a wave of opportunistic attacks against those who invest in the cryptocurrency, according to Chainalysis.
“If you have more value to steal, you’re going to have higher amounts stolen,” Eric Jardine, a cybercrimes research manager at Chainalysis, told DL News.
The bleak warning comes as the rising number of physical attacks have forced industry players to up their security.
For instance, during the EthCC conference in Cannes, the team worked closely with local authorities to secure the event. They agreed to deploy additional security measures and police officers to the scene, making its level of security comparable to the famed international film festival.
Chainalysis’ report tracked the correlation between the forward-looking Bitcoin moving average and the rise in physical attacks.
Jardine says that the correlation is “basically a one for one”. So when the moving average spikes, you see a rise in physical attacks.
“That suggests that the people behind the physical attacks are baking in current prices plus expectation of future prices,” said Jardine.
Jardine said there’s a causal relationship between Bitcoin’s price and the number of physical attacks.
“That causal mechanism is people are greedy.”
The report also notes that many attacks go unreported, so the true number is likely much larger.
Protection
Chainalysis discourages large public displays of wealth or social media activity that reveals trading history or crypto holdings as it paints a target on one’s back.
Especially for large holders, Chainalysis says conventional personal security measures may be warranted. This includes hiring professional security consultation, varying daily routines, and watching out for surveillance or stalkers.
Jardine outlined a few methods of protecting one’s crypto assets.
One way of reducing risk is by using a multi-signature wallet involving third party custodians. These wallets require multiple signatures to execute a transaction, rather than a single one. Therefore if a person was to be physically attacked, they may not be able to transfer the assets without the approval of a third party.
Another possible way to mitigate risk is to hold crypto assets off chain in the form of traditional market products such as ETFs. This gives participants exposure to the market without having to worry about self custody.
“Hopefully that constellation of factors puts a damper on this trend, because it’s certainly an unfortunate one with a high human cost,” said Jardine.
Zachary Rampone is a DeFi correspondent at DL News. Have a tip? Contact him at [email protected].
