How Crypto Criminals Stole $713 Million Using Age-Old Tricks
By Joe Tidy, BBC World Service Cyber Correspondent
In the rapidly growing world of cryptocurrency, a dark side has emerged that is leaving many investors devastated. Despite blockchain technology’s transparency, victims often find themselves powerless when their digital assets are stolen. Recent reports reveal that in 2025 alone, criminals absconded with an estimated $713 million (£532 million) from individual crypto investors – a figure that may well be underreported.
The Agony of Losing Crypto
Helen and Richard, a UK couple and ordinary workers, know this agony all too well. For seven years, they invested carefully in Cardano, a digital cryptocurrency, accumulating a significant amount with the hope of securing their financial future. But in early 2024, hackers breached their cloud storage, gaining access to sensitive wallet information. After a small test transaction, the entire $315,000 (ÂŁ250,000) worth of cryptocurrencies were quietly transferred out of their possession.
“You can see your money there on the public blockchain, but there’s nothing you can do to get it back,” Helen explained. Watching the hackers shuffle their coins from wallet to wallet only deepened their helplessness. Unlike traditional banking, where stolen funds can sometimes be recovered, cryptocurrency transactions are irreversible and the culprits often remain anonymous.
Helen has since been determined to recover the stolen funds, seeking assistance from police forces and Cardano developers, but even with the wallet addresses of the thieves, tracing them remains a challenge. With no established regulatory protections, she plans to hire private investigators when she can save enough money.
Rise in Crypto Crime Amid Growing Adoption
A survey carried out by the UK’s Financial Conduct Authority (FCA) in August 2024 showed that roughly 12% of British adults—around seven million people—owned crypto-assets. Globally, the number of crypto users now exceeds 560 million. However, as ownership has surged, so too have criminal exploits.
In 2025, overall thefts in the crypto industry were valued at over $3.4 billion (£2.5 billion), according to Chainalysis, a blockchain analytics firm. The lion’s share of these losses stemmed from major cyberattacks on crypto companies. Notably, North Korean hackers executed a massive heist, stealing $1.5 billion (£1.1 billion) from the Bybit exchange in February 2025. While most exchanges bear these losses, limiting individual impacts, attacks targeting regular users have also been on the rise.
Chainalysis reported a doubling in attacks against individuals—from 40,000 in 2022 to 80,000 in 2025—with stolen value estimated at $713 million. Because many victims do not report scams, experts believe the actual figure could be significantly higher.
"The crypto space remains largely unregulated in the UK and globally, leaving investors vulnerable," the FCA warned. Traditional financial thefts often come with consumer protections like bank compensation schemes and ombudsman services. These safeguards are mostly absent in the crypto realm, meaning those affected risk losing all their money.
The Underreported Threat to Individuals
When searching for help, victims may find limited resources. For instance, Binance, the world’s largest cryptocurrency exchange with over 1.4 million users in the UK, has restricted UK clients since 2023 due to lack of FCA authorization. Its UK webpage for stolen account support is even blocked, reflecting regulatory complexities.
Chainalysis describes individual-targeted crypto crime as the “under-documented frontier” largely fueled by the rapid growth in investors and increasingly hardened security at large exchanges. As major platforms become harder targets, criminals shift focus to individuals, perceiving them as easier prey—especially those who hold large amounts and are outspoken about their assets.
From Digital Hacks to Violent ‘Wrench Attacks’
Cyberattacks are only one part of the crime spectrum. Increasingly, physical threats including home invasions and violent robberies are becoming a serious concern. Within the crypto community, this form of attack is known as “wrench attacks,” named after the brutal method used to coerce victims into handing over digital keys or passwords.
In Spain in April 2025, criminals violently coerced a couple over their wallets; the male victim was shot and later found dead, with multiple arrests made in Spain and Denmark. Similar kidnappings and extortion attempts have occurred in France, including the high-profile abduction of David Balland, co-founder of Ledger, a crypto security firm, where one victim’s finger was severed during an extortion attempt.
UK police also made arrests after masked men stopped a car between Oxford and London last month, forcing a victim to transfer cryptocurrency valued at ÂŁ1.5 million.
Phil Ariss, director of UK Public Sector Relations at TRM Labs, a blockchain intelligence company, noted: “Criminal groups comfortable with violence are migrating to crypto crimes. Whether targeting high-value watches or cryptocurrency wallets, as long as there is a way to launder stolen assets, offenders see no difference.”
Looking Ahead: A Call for Vigilance and Regulation
With cybercriminals constantly innovating and sometimes physically threatening victims, the crypto community faces enormous challenges. Experts suggest that enhanced security practices, clearer regulations, and better law enforcement coordination are critical to protect individual investors.
Meanwhile, victims like Helen and Richard are forced to navigate a complex and often opaque landscape, hoping for justice in an ecosystem where theft is public but accountability is elusive.
For anyone investing in cryptocurrencies, understanding the risks and maintaining vigilance is essential. The promise of digital wealth comes with risks that traditional financial systems have worked for decades to mitigate—a crucial fact often overlooked in the rush to embrace the digital future.