Cryptocurrency-related kidnapping incidents (wrench attacks) have shown a significant upward trend in recent years. Compared to traditional investors, cryptocurrency holders have less institutional protection. Bitcoin investors are now concerned for their safety, increasingly hiring security companies to erase digital traces to avoid becoming targets of attacks.
The number of cryptocurrency 'wrench attack' cases is on the rise
Cryptocurrency-related kidnapping incidents (commonly known as 'wrench attacks', where victims are violently coerced into surrendering their wallet passwords) are showing a significant upward trend from 2024 to 2025. This is not only limited to the shift from digital crime to physical violence but is also related to the continuous rise in the prices of cryptocurrency assets like Bitcoin, attracting more criminal gangs to target high-profile investors.
Compared to traditional investors, cryptocurrency holders receive less institutional protection. Many cryptocurrency holders adopt a self-custody model, meaning users control their wallet's private keys themselves, rather than having them managed by exchanges like Coinbase or Binance. Furthermore, funds transferred from traditional bank accounts are usually easier to trace, but the relative anonymity of blockchain makes recovering stolen funds much more difficult.
Private information and security company Vigilance founder Charles Finfrock, who was a senior official at the CIA, also managed global information security investigations at Tesla. He found that many Bitcoin investors are now concerned about their safety and are hiring security companies to eliminate digital traces to avoid becoming targets of attacks.
Finfrock stated:
'If you hit me on the head with a wrench until I send you one million dollars, but the bank still controls the remittance process. However, cryptocurrency is different; individuals control the entire transmission mechanism, which is the biggest difference and also the reason it is so dangerous.'
How to avoid the risk of crypto kidnapping?
The risk of crypto kidnapping mainly comes from publicly exposing wealth and personal information, so the focus is on 'privacy first' and 'multi-layer protection'. Here are several recommendations based on the experiences of experts and victims; this is not legal advice, please consult professionals according to individual circumstances.
Enhance privacy protection, avoid flaunting wealth
Due to criminal gangs often tracking targets from social media platforms like X (Twitter) or Instagram, public information is the primary vulnerability. It is especially important to avoid boasting about holdings, wallet addresses, or wealth on social media. Additionally, use anonymous accounts, and do not share location tags, daily habits, or family photos.
Diversify and secure asset safety
Asset security may include the following safer measures:
Use multi-signature wallets that require multiple authorizations for transactions
Using wallet time locks can also delay transactions for several days after initiating them, allowing for cancellation of the transfer
Use hardware wallets combined with cold storage, enabling plausible deniability
Distribute assets across multiple wallets to avoid holding large amounts of cryptocurrency in a single hot wallet
Prepare a 'panic wallet' to store a small amount of assets for emergency handover
Note: The plausible deniability of crypto wallets is a security design that allows users, when facing coercion or threats, to 'reasonably deny' holding more assets by hiding or layering wallets to reduce risk.
Insurance and assistance from professional companies
Create an emergency contact list, including lawyers and police. Seek related insurance or professional company assistance.
This article about flaunting wealth leading to crises, how cryptocurrency investors can avoid becoming victims of 'ransom attacks' first appeared in Chain News ABMedia.
