While online hacks and scams have long plagued cryptocurrency accounts, a growing share of crypto thefts now originates in the physical world. Crooks are increasingly resorting to face-to-face coercion to steal digital assets, a trend dubbed "wrench attacks" within the crypto industry. ### The Alarming Rise of Physical Coercion According to blockchain security audit company **CertiK**, wrench attacks — defined as incidents where adversaries use violence, intimidation, or credible threats to compel victims to transfer digital assets or surrender private keys — saw a 33% year-over-year increase in the first half of 2026. The company identified 52 such attacks worldwide through June, up from 39 during the same period in 2025. These crimes often fall into traditional categories like home invasions, kidnappings, and, in rare cases, murder. **CertiK** acknowledges that their survey likely undercounts these incidents, as many victims may not report them, and many remain private until investigations conclude. ### Expanding the Attack Surface: Proxy Victims Threats extend beyond direct interaction with the primary crypto holder. Attackers are increasingly targeting "proxy victims" such as spouses, parents, children, employees, or close friends. The report notes that these individuals often have weaker operational security, more predictable routines, and less training than the primary target, making them vulnerable entry points. Recent examples underscore the severity of these attacks: * A kidnapping of a French mother and child in April. * A 2025 home invasion in Minnesota. * A 2024 case in Connecticut involving a carjacked **Lamborghini**. ### Soaring Financial Losses The financial impact of wrench attacks has escalated dramatically. Reported losses have reached $124 million so far this year, a significant jump from $10.5 million reported in the first half of 2025. **CertiK** advises viewing these figures as an indicator of the overall financial scale, encompassing both coerced funds and assets that may have been frozen. ### Industry Warnings and Self-Custody Risks Security firms and law enforcement have been raising alarms about wrench attacks for the past couple of years. Blockchain analysis firm **TRM Labs** reported on the phenomenon last March, and British trade association **CryptoUK** hosted a webinar with law enforcement in December. Researcher **Lukasz Olejnik** highlighted in January that wrench attacks often leverage the risks associated with "self-custody" of cryptocurrency, where users store their digital assets in offline wallets. Unlike traditional banks, there is no intermediary to halt, slow, or reverse transactions, leaving the user entirely on their own in such scenarios.