Rising Threat of ‘Wrench Attacks’ on Wealthy Crypto Holders
By Alan Suderman, AP Business Writer
Published May 28, 2025, 11:02 AM
The alarming case of an Italian man who was reportedly kidnapped and tortured for several weeks in a lavish Manhattan townhouse has drawn attention to a growing threat within the cryptocurrency sphere: wrench attacks. These violent crimes, targeting wealthy individuals for their digital assets, underline a darker, more dangerous side of the booming crypto market.
What is a Wrench Attack?
The term "wrench attack" was popularized by an internet comic that satirized the simplicity with which high-tech security measures can be bypassed through brute force. The concept involves using violence to coerce a victim into revealing their cryptocurrency passwords, making it a brutal but effective method for thieves.
According to Phil Ariss of TRM Labs, a leading crypto tracing firm, such attacks have surged alongside cryptocurrencies’ increasing integration into everyday finance. “Criminal groups already comfortable with using violence to achieve their goals were always likely to migrate to crypto,” Ariss noted in a recent blog post.
Why Are Crypto Holders Targets?
The distinct characteristics of cryptocurrencies contribute to making wealthy holders prime targets for informally organized crime. Cryptocurrencies like Bitcoin allow individuals full control over their assets without the need for banking intermediaries or government permission. However, this autonomy poses significant risks; if these assets are stolen or lost, recovery is often impossible.
In the cryptocurrency community, self-reliance is paramount. Individuals are responsible for safeguarding their private keys—unique codes used for accessing their crypto holdings—an ethos epitomized by the popular saying, “not your keys, not your coins.” Unlike physical valuables like cash and jewelry, crypto can be transferred in seconds across the globe through just a few clicks, making it particularly enticing for criminals.
The Manhattan Incident
In the recent New York case, two suspects were apprehended, though many details, including the value of the cryptocurrency in question, remain undisclosed. This incident comes on the heels of several wrench attacks globally, including reports from France where thieves engaged in horrific acts, such as cutting off a crypto executive’s finger.
Though hacking has historically been a more common method for stealing cryptocurrency, wrench attacks have gained notoriety for their sheer brutality. Cybercrime groups, including state-sponsored hackers from North Korea, have been known to pilfer billions through hacking, yet physical threats have now emerged as a complementary route.
Mitigating Risks
Crypto holders often adopt strategies to protect themselves from theft, including keeping their private keys in “cold wallets”—offline storage systems designed to thwart hacking attempts. Unfortunately, these measures are ineffective against physical coercion, where thieves can compel victims to disclose their passwords.
Security experts recommend several strategies to mitigate risks associated with wrench attacks, such as using multi-signature wallets that require multiple approvals for transactions. Additionally, many crypto investors attempt to preserve their anonymity by adopting pseudonymous identities on social media, a practice increasingly common among high-profile figures in the industry.
As the cryptocurrency market continues to evolve, so too does the landscape of crime surrounding it. Awareness of threats like wrench attacks is vital for crypto holders as they navigate this digital frontier.
For more updates and safety tips regarding cryptocurrency investment, stay tuned to our coverage.
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