We’re always thinking about the online security of our crypto wallets (as we should), and maybe we’ve taken all precautions already. Backup of private keys, proper passwords, privacy tools like VPNs, and 2FA on our accounts. Surely, there’s no way for someone to steal our crypto… unless they have a $5-dollar wrench and some evil intentions. Yes, just that. Picture this: you think you’re safe, your wallets are good. Maybe you were gloating a bit about your crypto earnings on social media. One awful night, a masked man invades your home, hits you with a $5-dollar wrench (or a gun) and threatens to keep doing it until you tell them where your private keys are, or you directly transfer your coins to them. Not a good scenario, but one that is becoming increasingly common. One awful night, a masked man invades your home, hits you with a $5-dollar wrench (or a gun) and threatens to keep doing it until you tell them where your private keys are, or you directly transfer your coins to them The record of physical or wrench attacks to steal crypto could be limited, since not all incidents are reported or published. However, Bitcoin developer Jameson Lopp, after being a victim himself,created a list of publicly available newspaper articles from all over the world describing such attacks against numerous victims. created a list created a list The list starts in 2014, with an attack against the very first person who received Bitcoin: Hal Finney. He was harassed, extorted, and “SWATed” at his own home. Being “SWATed” means someone falsely reports a serious emergency (like a hostage situation) to police, causing a SWAT team to be sent to the victim’s address. After that, incidents have included a range of violent encounters, including home invasions, kidnappings, and assaults. Hal Finney The frequency of such attacks has shown a correlation with the rising value and adoption of cryptocurrencies, with notable spikes during bull markets —for instance, in 2021 and 2024. Over 200 attacks have been registered. The frequency of such attacks has shown a correlation with the rising value and adoption of cryptocurrencies, with notable spikes during bull markets Below, we’ll see more details about this and how to protect ourselves. Attacks on “Crypto People” People who are directly involved in crypto (developers, miners, traders, and founders) have been repeatedly attacked over the years to steal coins from them. Sadly, criminals didn’t stop with Finney or Lopp, who was also “SWATed.” Yury Mayorov, one of the founders of the cryptocurrency PRIZM, was abducted in Moscow in 2018, drugged, and robbed of at least 300 BTC (over $3 million at the time). was abducted was abducted Miners and traders are also common victims. Journalistic pieces describing kidnapped miners and traders, or something along the lines of “crypto trader robbed at gunpoint,” abound. Losses range from thousands to millions of dollars. Miners and traders are also common victims. Journalistic pieces describing kidnapped miners and traders, or something along the lines of “crypto trader robbed at gunpoint,” abound. Sometimes, they’re lured into a physical, peer-to-peer (P2P) trade; some other times, they’re just walking around or in their own homes at the moment of the attack. The blogger Pavel Nyashin suffered a home invasion after boasting about his crypto wealth online, and criminals robbed him of $425,000. suffered suffered Torture isn’t off the table, either. In January 2025, David Balland, co-founder of Ledger, and his wife were kidnapped from their home in France and held for ransom involving crypto. The attackers separated them and demanded payment, even sending a photo of Balland’s mutilated finger to pressure the company. At least, a massive police effort rescued both victims, recovered most of the crypto paid, and led to several arrests. were kidnapped were kidnapped Assaults, Invasions, and Friends Even if “crypto people” are common victims, that doesn’t mean average crypto users aren’t targeted. In April 2018, in Dubai, two brothers seeking to invest in Bitcoin were tricked into entering a supposedly legitimate office. Instead, they were assaulted and bound by a gang of ten, who fled with roughly Dh7 million (about $1.9 million). Fortunately, Dubai Police used smart surveillance tools to track down all the culprits in record time, recovering the stolen funds. they were assaulted they were assaulted In 2019, an unknown millionaire in Norway was surprised at his own home by a man with a gun, who demanded cryptocurrency from him. He managed to escape through the balcony. Other victims haven’t been that lucky. In 2021, in France, a 19-year-old computer engineering student was drugged, stabbed, and killed, likely at his own home, to steal €200,000 in crypto from him. The culprits were arrested. was surprised was surprised In 2021, in France, a 19-year-old computer engineering student was drugged, stabbed, and killed, likely at his own home, to steal €200,000 in crypto from him was drugged was drugged Some other times, even friends, family, or dates are involved. In 2018, A Bronx biker gang lured a crypto-rich friend into a fake Uber, kidnapped him at gunpoint, and stole $1.8 million in Ether after forcing him to give up his passphrase. In 2021, a 24-year-old man from Maryland drugged his father with a benzodiazepine-laced tea to gain access to a shared crypto account. After rendering his father unconscious for two days, he stole $400,000 worth of digital assets. lured lured drugged his father drugged his father In the same year, a crypto holder in Colombia met a woman via Tinder who later drugged him during a visit to his home, stole his phone, and gained access to multiple accounts. By exploiting his phone’s unlock code and 2FA, she attempted to drain his crypto funds. At least, only a portion was stolen, as he had a multisignature wallet to protect his funds. gained access gained access Phishing in Real Life “Phishing” occurs online when cybercriminals pretend to be someone else (often, a company or organization) or build fake websites and apps identical to legitimate ones, all with the intention to trick users and steal from them —fiat and crypto. But this also happens in real life, when criminals pretend to be someone they’re not to steal money, and in this case, cryptocurrencies. when criminals pretend to be someone they’re not to steal money, and in this case, cryptocurrencies. In 2021, in the Netherlands, four men posing as postmen invaded the home of a family of three, including a baby. invaded invaded They tied them up and demanded cryptocurrencies from the father, who ended up transferring $250,000 from his accounts to them. Similarly, in 2023, a 76-year-old couple in Durham, North Carolina, experienced a harrowing ordeal when individuals posing as utility workers forced their way into the couple’s home and coerced them at gunpoint to transfer $250,000 worth of cryptocurrency. experienced experienced This can also happen in public spaces. In 2017, in Turkey, a gang posing as policemen stopped a businessman's car and ended up stealing $2.8 million in Bitcoin from him. Around March 2024, a fake Uber driver in Arizona was lurking around. He tricked several of his passengers into lending him their phones, which he used to access Coinbase accounts and steal more than $200,000. In 2017, in Turkey, a gang posing as policemen stopped a businessman's car and ended up stealing $2.8 million in Bitcoin from him. stopped stopped He tricked He tricked Protective Measures Yes, we know. There’s little anyone can do against a gun pointed at their head, but still, we can take some protective measures for ourselves, our family, and our cryptocurrency funds. Don’t overshare about your crypto earnings online. It’s just an awful idea. Don’t overshare about your crypto earnings online. It’s just an awful idea. “Decentralize” your tokens by dividing them into several wallets, with different private keys, kept in different places. In case of a physical attack, you can share a “bait wallet” instead of all your funds. “Decentralize” your tokens by dividing them into several wallets, with different private keys, kept in different places. In case of a physical attack, you can share a “bait wallet” instead of all your funds. “Decentralize” your tokens by dividing them into several wallets, with different private keys, kept in different places. Keep your crypto funds in multisignature accounts that have to be co-signed by trusted people — kidnapping two or more people will be a lot harder. In Obyte wallets, you can do this by creating a multi-device account from the Global Settings. Keep your crypto funds in multisignature accounts that have to be co-signed by trusted people — kidnapping two or more people will be a lot harder. In Obyte wallets, you can do this by creating a multi-device account from the Global Settings. Keep your crypto funds in multisignature accounts that have to be co-signed by trusted people — kidnapping two or more people will be a lot harder. In Obyte wallets, you can do this by creating a multi-device account from the Global Settings. Obyte wallets Obyte wallets Keep little to no funds in the easily accessible mobile wallet on the phone you carry everywhere, including potentially risky places. Instead, use a hardware wallet or, at the very least, a desktop wallet for storing most of your coins. In Obyte, you can also create a textcoin (a type of offline paper wallet) to keep the bulk of your funds safely offline. Make sure nobody knows that this textcoin exists. Keep little to no funds in the easily accessible mobile wallet on the phone you carry everywhere, including potentially risky places. Instead, use a hardware wallet or, at the very least, a desktop wallet for storing most of your coins. In Obyte, you can also create a textcoin (a type of offline paper wallet) to keep the bulk of your funds safely offline. Make sure nobody knows that this textcoin exists. Keep little to no funds in the easily accessible mobile wallet on the phone you carry everywhere, including potentially risky places. create a textcoin create a textcoin Never open the door or easily hand over your phone to strangers without a good reason. Set up passwords for everything and be cautious. Never open the door or easily hand over your phone to strangers without a good reason. Set up passwords for everything and be cautious. Be careful with people you’ve just met online. If you need to do a crypto deal involving cash, choose traders with strong reputations and take time to research them well before meeting in person. Be careful with people you’ve just met online. If you need to do a crypto deal involving cash, choose traders with strong reputations and take time to research them well before meeting in person. Be careful with people you’ve just met online. Maybe an obvious one, but don’t parade around with significant amounts of cash or a fat crypto wallet in your phone outside business hours, on lonely streets, enclosed spaces, or in other people’s cars. Maybe an obvious one, but don’t parade around with significant amounts of cash or a fat crypto wallet in your phone outside business hours, on lonely streets, enclosed spaces, or in other people’s cars. Stay up to date with the news —in crypto and outside. Your local newspapers could warn you about some useful things before it’s too late. Stay up to date with the news —in crypto and outside. Your local newspapers could warn you about some useful things before it’s too late. Featured Vector Image by storyset / Freepik Featured Vector Image by storyset / Freepik Freepik Freepik
