Increase in Physical Attacks on Cryptocurrency Users Raises Concerns

Reports indicate a rise in physical attacks on cryptocurrency users, commonly known as “wrench attacks.” These incidents have become increasingly violent, according to Haseeb Qureshi, a partner at Dragonfly, who shared insights based on data compiled by Bitcoin developer Jameson Lopp. The data shows a growth in both the frequency and severity of these attacks over time.

Qureshi noted that while the recent uptick in violence resembles the levels seen in 2021, it remains below the risk levels prior to 2019. He categorized each attack into five severity levels, ranging from minor to fatal, and highlighted that the average incident has grown more violent over the years.

Geographically, Western Europe and the Asia-Pacific region have experienced the most significant increases in such violence. In contrast, North America, although experiencing more incidents, is considered the safest region by comparison.

Qureshi explored the relationship between the rise in attacks and cryptocurrency market capitalization. His analysis showed that approximately 45% of the variations in reported violence correlate with the overall crypto market cap. He argued that as crypto prices rise, they tend to attract more crime. Despite this, he emphasized that the increase in violence does not necessarily mean a higher risk on a per-user basis.

To illustrate this point, Qureshi used the number of monthly active users on Coinbase as a proxy for the number of active crypto holders. He also normalized the number of attacks by the total market cap, which suggested that cryptocurrency was more dangerous in earlier years, such as 2015 and 2018, when the user base was smaller. The Coinbase user base has expanded dramatically, from about 2 million in 2015 to approximately 120 million in 2025, but the level of violence has not increased at the same rate.

Despite a moderate increase in violent events per user recently, it remains comparable to the 2021 level and significantly lower than pre-2019 figures. Additionally, the violence per dollar of market cap has shown little change.

High-profile incidents in 2025 have drawn attention to the issue. In January, David Balland, co-founder of Ledger, was reportedly kidnapped in France and held for ransom. During the ordeal, his finger was severed to force payment from his associates. He and his wife were later freed by French authorities.

In another case, an American visitor to London encountered trouble after being misled into the wrong vehicle while waiting for an Uber. Identified as Jacob Irwin-Cline, he was reportedly drugged and robbed of approximately $72,000 in XRP and $50,000 in Bitcoin.

The crypto community continues to monitor these incidents closely, emphasizing the importance of security and vigilance. The situation highlights ongoing concerns about the safety of crypto users and the need for enhanced protective measures. Further developments in this area are anticipated as the community seeks solutions to mitigate such risks.