Wrench Attacks: Why Bitcoin Holders Now Fear Burglars More Than Hackers
Holding your own keys protects you from exchange failures and hacks. But it creates a different risk: someone can try to force you to hand them over. Such "wrench attacks" are increasing, and they are now changing how wealthy holders store their bitcoin.
Record demand for ETF swaps
BlackRock's head of digital assets, Robbie Mitchnick, told Barron's on 9 November that demand from large holders to swap self-custodied bitcoin for shares of the iShares Bitcoin Trust (IBIT) is at its highest level yet. Of all the reasons, "the single largest one is security and peace of mind," he said. The minimum size for such a swap has fallen from around 30 million dollars to between 1 and 2 million dollars.
The attacks are real
According to Chainalysis, wrench attacks netted a record 58 million dollars in 2025 and another 30 million dollars in the first half of 2026. Home invasions account for a growing share. France is particularly affected: authorities there have recorded 77 crypto-linked kidnappings, extortion cases and home invasions so far in 2026, more than in all of 2025.
Investor Evan Luthra has now described how he was robbed near Oxford in November 2025. Five masked men stopped his car, assaulted him and forced him to unlock his phone with his face. Within about 30 minutes, they moved around 2 million dollars from his exchange accounts. Binance and MEXC froze part of the funds; according to Luthra, almost 1 million dollars has been recovered. He believes his public profile made him a target.
How to protect yourself
- Stay quiet about your holdings: no posts about gains, no screenshots of balances, no "I own bitcoin" at events or among strangers.
- Protect your personal data: customer data from crypto companies has leaked in the past. Use a delivery address that is not your home where possible, and give out your phone number sparingly.
- Keep the phone a small wallet: only keep spending money in apps on your phone. Exchange accounts should not be open with face unlock alone; use a separate PIN and a withdrawal whitelist with a time delay where available.
- Make large sums slow to move: a multisig setup with keys stored in different places means no one can move everything on the spot, not even you under pressure.
- Use a passphrase wisely: many hardware wallets support an additional passphrase that opens a separate wallet. The main balance stays hidden without it.
- Your safety comes first: no amount of bitcoin is worth risking your health. After an attack, contact the police and your exchanges immediately. Fast action can freeze funds, as Luthra's case shows.
Self-custody or ETF?
An ETF moves the risk to a custodian: there are no keys at home that anyone could extort. In return, you give up direct control and own a fund share instead of bitcoin. For most people with moderate holdings, discretion and a well-planned setup are enough. Attackers usually look for the people who are easiest to find. For other ways criminals target people rather than code, read our article on attacks on people and keys.
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