According to Chainalysis, there may be a sharp increase in so-called 'wrench attacks' — violent crimes related to cryptocurrency theft, in 2025.
Definition of 'wrench attacks'
'Wrench attacks' refer to situations where physical force or intimidation is used to coerce a victim into surrendering their cryptocurrency holdings. As of July 2023, 35 incidents have been recorded, and projections suggest the number of attacks may double compared to the previous record.
Factors Contributing to Increased Violence
Chainalysis notes that the rise in attacks is linked to the increasing price of Bitcoin, triggering opportunistic physical assaults against known crypto holders. Since early 2023, there has been a notable rise in violent crimes, including kidnappings and extortions, associated with public interest in crypto assets and their liquidity.
Prospects and Law Enforcement Effectiveness
Despite the anticipated rise in crimes, factors such as the availability of structured financial products like exchange-traded funds (ETFs) could help deter theft. Moreover, blockchain technology enables tracking of stolen cryptocurrency, and continued law enforcement activity may also act as a deterrent.
Overall, it can be expected that as Bitcoin prices increase, the number of 'wrench attacks' may rise. However, the presence of transparent technologies and proactive law enforcement could help mitigate these crimes.
