How Crypto Criminals Stole $713 Million: The Rising Threat of Crypto Theft
By Joe Tidy, World Service Cyber Correspondent
19 January 2026
British Broadcasting Corporation (BBC)
Cryptocurrency, touted as the future of money, carries a uniquely distressing risk for its users: thefts that are permanently recorded on a public ledger yet impossible to reverse. The sad reality faced by victims like Helen and Richard (pseudonyms), a couple from the UK, is that their digital fortunes can be seen being stolen on the blockchain—yet nothing can be done to recover them.
A Personal Devastation
Helen and Richard had been carefully accumulating Cardano, a popular cryptocurrency, over seven years. They were not wealthy—Helen works as a personal assistant and Richard as a composer—but they had pinned high hopes on their crypto investments to secure their future.
Their cautious approach included safeguarding their wallets’ private keys in cloud storage. Yet, in February 2024, hackers infiltrated that cloud account, making off with all their coins in a swift and devastating attack. Despite tracking the stolen funds as they moved between wallets, the couple was powerless to recover even a fraction of their $315,000 loss.
Helen described it as akin to watching a burglar gather her cherished possessions just out of reach across an impassable chasm. Determined, she gathered detailed police reports and information from Cardano developers but faces the stark truth that the criminals remain anonymous behind cryptographic masks.
Crypto Crime on the Rise
Helen and Richard’s experience is not isolated. Ownership of cryptocurrencies is surging worldwide, with an estimated 560 million global owners. In the UK alone, about 12% of adults—approximately seven million people—are crypto investors.
But as crypto investments balloon, so do cybercrimes targeting them. According to blockchain analysis firm Chainalysis, thefts totaled over $3.4 billion (£2.5bn) in 2025, level with previous years. While major crypto exchanges often absorb losses from massive breaches—such as North Korean hackers stealing $1.5 billion from Bybit in 2025—individual investors remain vulnerable to a growing wave of targeted attacks.
Chainalysis reports that attacks on individuals doubled from 40,000 in 2022 to 80,000 in 2025, accounting for around $713 million (ÂŁ532m) of losses. However, the actual figure may be far higher, as many victims choose not to report crimes, leaving them isolated.
The Regulatory Void and Its Consequences
Unlike traditional finance, where fraud victims can seek redress through banks, card companies, or ombudsman services, cryptocurrency remains largely unregulated in the UK and many other countries.
The UK’s Financial Conduct Authority (FCA) highlights that people investing in crypto should be prepared to lose all their money, as protections are minimal. Reflective of this, Binance, the world’s largest crypto exchange with around 1.4 million UK users, ceased accepting UK clients in 2023 due to lack of FCA authorization. Ironically, Binance’s own advice page for hacked accounts is blocked in the UK.
Sophisticated and Brutal Tactics: From Hacks to ‘Wrench Attacks’
Criminals targeting crypto owners range from state-sponsored groups to young gangs using sophisticated social engineering schemes. In the United States, a group called the Social Engineering Enterprise confessed to stealing over $260 million by masquerading as crypto exchanges and manipulating victims into transferring coins. They reportedly lavished their gains on luxury goods, private jets, and high-end cars.
Physical violence is also on the rise. In Spain, a man was shot and held captive with his partner in an attempt to seize their crypto wealth; his body was later found. French authorities have investigated numerous abduction attempts targeting cryptocurrency executives. One such case involved David Balland, co-founder of Ledger, who was kidnapped and tortured, suffering a severed finger during an extortion attempt.
UK police arrested six individuals after robbing a car and forcing a victim to transfer ÂŁ1.5 million in cryptocurrency at gunpoint.
These violent crimes have earned the chilling nickname "wrench attacks" within the crypto community, referring to criminals threatening victims with spanners or other tools to coerce them into surrendering access to digital wallets.
The Road Ahead
Phil Ariss, director of UK Public Sector Relations at blockchain intelligence firm TRM Labs, observes that traditional criminals familiar with violence are naturally drawn to crypto targets once viable laundering or liquidation routes appear. The anonymity and global reach of cryptocurrency make it an increasingly attractive prize.
For victims like Helen and Richard, the journey to recovery is long and fraught with frustration. While some large firms have resources to fight hacks, individual investors face a perilous landscape, where every transaction is public but justice remains elusive.
As the crypto market continues to grow, so does the urgent need for greater regulatory clarity, improved security measures, and increased awareness to protect the millions placing their trust—and fortunes—in this volatile space.
If you are a cryptocurrency investor, remain vigilant about security and stay informed about potential scams and attacks. Remember, your digital assets are only as safe as your security practices and the protection frameworks in place.