A surge in violent, real-world attacks targeting cryptocurrency holders is raising alarm across the industry, according to new data released by Jameson Lopp, a prominent security executive.
Physical crypto attacks are becoming more and more often, please y'all should stay safe, don't brag about your crypto bags and try to stay low-key? pic.twitter.com/8050twDaVq
— _AdeChainLink (@Aayooluwa007) December 5, 2025
Lopp, who maintains a long-running database tracking physical attacks aimed at stealing private keys or wallet credentials, reports that such incidents have skyrocketed in 2025.
In 2023, only 18 cases were reported worldwide. That number rose to 24 in 2024. But by the middle of 2025, more than 50 physical attacks had already been recorded, which is more than double the total from the previous year.
Blockchain analytics firm Chainalysis has confirmed the trend, with some analyses showing a 169% year-over-year increase. What used to occur only several times per year is now being documented on a weekly basis.
Violence Intensifies as Criminal Tactics Evolve
The severity of the attacks is also escalating. In January 2025, David Balland, co-founder of hardware wallet manufacturer Ledger, was kidnapped in France. During the ransom attempt, attackers severed one of his fingers in an effort to force access to his wallet.
In March, popular streamer Amouranth was targeted by an armed home invasion just hours after publicly revealing she held about USD 20 million worth of Bitcoin.
Another high-profile incident in San Francisco involved criminals posing as delivery workers who restrained a victim and stole approximately USD 11 million in crypto assets. The attackers had previously identified the victim’s holdings and home address, enabled in part by blockchain transparency and leaked personal information.
Challenges to the “Self-Custody” Principle
For years, the crypto community has championed the mantra “Not your keys, not your coins,” encouraging users to self-custody their assets rather than rely on centralized exchanges.
But self-custody introduces a critical weakness: if the owner is physically coerced, the entire balance can be stolen instantly. Even cold wallets designed for offline protection cannot defend against threats to the owner’s safety.
This creates a dangerous single point of failure that criminals are increasingly exploiting.
As a result, some users are adopting countermeasures such as “panic wallets”, decoy wallets containing small amounts of crypto to satisfy attackers, or exploring insurance products that cover physical theft.
The crypto community now faces a difficult question: Is the sovereignty offered by self-custody worth the rising threat of physical violence?
Experts say the only sustainable approach is improving education, adopting robust safety practices, and understanding the full spectrum of risks associated with holding substantial crypto assets.
