The story of an Italian man who claimed he was kidnapped and tortured for weeks inside a luxury Manhattan townhouse by criminals seeking access to his bitcoins has cast a harsh spotlight on a growing threat in the world of cryptocurrency: the use of physical violence to obtain digital assets.
This type of crime is known in tech circles as a “wrench attack”—a term coined from an online comic that humorously points out how even the most sophisticated cybersecurity can be rendered useless if someone is simply beaten with a wrench until they give up their passwords.
Phil Ariss, an expert at blockchain intelligence firm TRM Labs, warns that such attacks are on the rise, fueled by the increasing integration of cryptocurrency into mainstream finance. “Criminal groups already comfortable using violence to achieve their goals were naturally inclined to migrate into the crypto space,” he wrote in a recent blog post.
Several features of cryptocurrencies help explain why wealthy holders of digital assets have become prime targets. Unlike traditional financial systems, cryptocurrencies like bitcoin give users full control over their funds, without the need for banks or government oversight. But that independence comes at a cost: if the assets are lost or stolen, there is no way to recover them.
The protection of private keys—the cryptographic codes that grant access to digital wallets—is a core principle of the crypto world. A popular saying among crypto enthusiasts sums it up: “Not your keys, not your coins.”
Blockchain transactions, which underpin cryptocurrencies, are permanent and irreversible. And unlike cash, jewelry, or gold, stolen cryptocurrency doesn’t need to be carried physically. With just a few clicks, vast sums can be transferred to another wallet instantly.
In the New York case, where two individuals have been charged, many details remain unclear, including how much bitcoin the victim actually owned. What is clear is that the incident marks a chilling escalation in a form of theft that, while less common than hacking, can be far more brutal.
For years, crypto theft was dominated by digital heists, many attributed to state-sponsored groups like those from North Korea, who are believed to have stolen billions of dollars in crypto assets. In response, many investors now store their private keys offline in so-called “cold wallets,” which can fend off even the most advanced cyberattacks.
But no wallet can protect its owner from a physical threat. If a criminal is willing to use violence and has direct access to the victim, digital security becomes irrelevant.
This type of attack isn’t limited to the U.S. France has seen several high-profile cases, including one in which thieves cut off a crypto executive’s finger in a bid to force him to hand over his keys.
To counter such threats, experts recommend additional precautions, such as multi-signature wallets that require multiple approvals before any transaction can go through.
Still, the most common strategy among crypto millionaires remains anonymity. On social media, it’s standard for even high-ranking executives in the crypto space to hide behind pseudonyms and cartoon avatars—an effort to avoid becoming the next target of a wrench attack.
