Showing off wealth and bragging about transactions lead to crises. How can Crypto investors avoid becoming victims of "swing attack"?

Cryptocurrency-Related Kidnapping Incidents (Wrench Attacks) Showing a Clear Upward Trend in Recent Years. Compared to traditional investors, cryptocurrency holders have less institutional protection. Bitcoin investors now worry about their safety and are hiring security companies to erase digital traces to avoid becoming targets.

Rise in Cryptocurrency “Wrench Attack” Cases

Cryptocurrency-related kidnapping incidents (commonly known as “wrench attacks” or “wrench attacks,” where violence is used to force victims to disclose wallet passwords) are showing a significant increase from 2024 to 2025. This trend is not only a shift from digital crime to physical violence but also relates to the continuous rise in the prices of crypto assets like Bitcoin, which has attracted more criminal groups targeting high-profile investors.

Compared to traditional investors, cryptocurrency holders have less institutional protection. Many crypto owners adopt self-custody models, meaning users control their wallet private keys themselves rather than relying on exchanges like Coinbase or Binance. Furthermore, funds transferred from traditional bank accounts are usually easier to trace, but the relative anonymity of blockchain makes recovering stolen funds more difficult.

Charles Finfrock, founder of private intelligence and security firm Vigilance, a former senior CIA officer and responsible for Tesla’s global information security investigations, has observed that many Bitcoin investors now worry about their safety and are hiring security companies to erase digital traces to avoid becoming targets.

Finfrock states:

“If you hit me over the head with a wrench until I transfer a million dollars, the bank still controls the transfer process. But cryptocurrency is different; individuals control the entire transmission mechanism, which is the biggest difference and also why it’s so dangerous.”

How to Avoid Cryptocurrency Kidnapping Risks?

Risks of crypto kidnapping mainly stem from publicly exposing wealth and personal information. The focus should be on “privacy-first” and “multi-layer protection.” Below are several suggestions based on expert and victim experiences, not legal advice. Please consult professionals based on your individual circumstances.

Enhance Privacy Protection, Avoid Flaunting Wealth

Criminal groups often track targets through social media platforms like X (Twitter) or Instagram. Public information is a primary vulnerability. Avoid showing off holdings, wallet addresses, or wealth on social media. Use anonymous accounts, and do not share location tags, daily routines, or family photos.

Diversify and Safeguard Asset Security

Asset safety measures may include:

• Using multi-signature wallets requiring multiple approvals for transfers
• Implementing time-locked wallets to delay transactions by several days for possible cancellation
• Using hardware wallets combined with cold storage and enabling plausible deniability
• Distributing assets across multiple wallets to avoid storing large amounts of crypto in a single hot wallet
• Preparing a “panic wallet” with a small amount of assets for emergency handover

Note: Plausible deniability in crypto wallets is a security feature allowing users to “reasonably deny” possessing more assets under duress or threat, by hiding or layering wallets to reduce risks.

Insurance and Assistance from Professional Companies

Establish an emergency contact list, including lawyers and police. Seek help from relevant insurance providers or professional security companies.

This article, “Flaunting Wealth and Showing Off Sparks Crisis: How Crypto Investors Can Avoid Becoming Victims of ‘Wrench Attacks’,” originally appeared on Chain News ABMedia.