Crypto thieves are becoming more brazen in their attempts to steal virtual currency, with a new report from Chainalysis shedding light on the increasing trend of physical attacks targeting cryptocurrency holders. According to the blockchain analytics firm, tens of millions of dollars have been lost to these so-called “wrench attacks” in the first half of 2026.
The report, which offers a preview of Chainalysis’ upcoming mid-year crypto crime report, highlights the growing threat posed by criminals who resort to tactics such as home invasions, kidnappings, and hostage situations to extort funds from crypto holders. In total, an estimated $30 million has been lost to these attacks so far this year, with the figure rising to $107 million when including attempted extractions like ransoms and blocked stolen funds.
The appeal of targeting crypto holders lies in the fact that they possess wealth in a form that can be instantly and irreversibly transferred, making them attractive targets for criminals looking for quick gains. Kidnappings have remained a relatively stable method of attack, accounting for 53% of total funds lost, while home invasions have seen a significant uptick, representing 37% of incidents compared to 26% in 2023.
According to the report, France has been hit hardest by these attacks, a trend that may be linked to a 2024 data breach in which a tax official leaked sensitive information on high-net-worth crypto holders. Attackers in France have also increasingly targeted family members of crypto holders in order to coerce payment, with over 40% of incidents in the country involving a relative.
Chainalysis’ analysis of post-theft crypto flows reveals three levels of attacker sophistication. Unsophisticated attacks involve direct transfers of stolen funds to centralized exchanges, making them easier for law enforcement to trace. Sophisticated attacks, on the other hand, are carried out by crypto-savvy thieves who use decentralized exchanges and other tools to obfuscate their movements. The most sophisticated attacks appear to be linked to organized crime networks, with funds ending up in services associated with cartels and terrorist financing.
Overall, the report underscores the evolving tactics of crypto thieves and the need for increased vigilance among cryptocurrency holders. As the value of virtual currencies continues to rise, it is essential for individuals to take steps to protect their holdings and guard against physical attacks aimed at stealing their assets.