Why 'wrench attacks' on wealthy crypto holders are on the rise

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Why 'wrench attacks' on wealthy crypto holders are on the rise

2025-05-28 23:18 Last Updated At：23:21

The headline-grabbing tale of an Italian man who said he was kidnapped and tortured for weeks inside an upscale Manhattan townhouse by captors seeking his bitcoin highlights a dark corner of the cryptocurrency world: the threat of violence by thieves seeking digital assets.

The alleged attempted robbery is known as a “wrench attack.” It’s a name popularized by an online comic that mocked how easily high-tech security can be undone by hitting someone with a wrench until they give up passwords.

Wrench attacks are on the rise thanks in part to cryptocurrency’s move into mainstream finance, Phil Ariss of the crypto tracing firm TRM Labs said in a recent blog post.

“Criminal groups already comfortable with using violence to achieve their goals were always likely to migrate to crypto,” Ariss said.

Some of the crypto’s key characteristics help explain why wealthy individuals who hold a lot of digital assets can be ripe targets for such attacks.

Cryptocurrencies like bitcoin offer traders full control of their funds without the need for a bank or permission from a government to buy, sell or hold it. The trade-off is that if funds are lost or stolen, there can be no way to get them back.

Self-reliance is a key ethos of crypto. Securing and controlling one’s private keys, which are like passwords used to access one’s crypto holdings, is viewed as sacrosanct among many in the crypto community. A popular motto is “not your keys, not your coins.”

Transactions on the blockchain, the technology that powers cryptocurrencies, are permanent. And unlike cash, jewelry, gold or other items of value, thieves don’t need to carry around stolen crypto. With a few clicks, huge amounts of wealth can be transferred from one address to another.

In the case in New York, where two people have been charged, a lot of details have yet to come out, including the value of the bitcoin the victim possessed.

Stealing cryptocurrency is almost as old as cryptocurrency itself, but it’s usually done by hacking. North Korean state hackers alone are believed to have stolen billions of dollars’ worth of crypto in recent years.

In response to the threat of hacking, holders of a large amount of crypto often try and keep their private keys off the internet and stored in what are called “cold wallets.” Used properly, such wallets can defeat even the most sophisticated and determined hackers.

But they can’t defeat thieves who force a victim to give up their password to access their wallets and move money.

The case in New York is the latest in a string of high-profile wrench attacks. Several have taken place in France, where thieves cut off a crypto executive’s finger.

Experts suggest several ways to mitigate the threats of wrench attacks, including using wallets that require multiple approvals before any transactions.

Perhaps the most common way crypto-wealthy individuals try to prevent wrench attacks is by trying to stay anonymous. Using nicknames and cartoon avatars in social media accounts is common in the crypto community, even among top executives at popular companies.

Dozens presumed dead and about 100 injured in fire at Swiss Alps bar during New Year's celebration

CRANS-MONTANA, Switzerland (AP) — Dozens of people are presumed dead and about 100 injured, most of them seriously, following a fire at a Swiss Alps bar during a New Year’s celebration, police said Thursday.

“Several tens of people” were killed at the bar, Le Constellation, Valais Canton police commander Frédéric Gisler said.

Work is underway to identify the victims and inform their families but “that will take time and for the time being it is premature to give you a more precise figure," Gisler said.

Beatrice Pilloud, attorney general of the Valais Canton, said it was too early to determine the cause of the fire. Experts have not yet been able to go inside the wreckage.

“At no moment is there a question of any kind of attack,” Pilloud said.

Officials called the blaze an “embrasement généralisé,” a firefighting term describing how a blaze can trigger the release of combustible gases that can then ignite violently and cause what English-speaking firefighters would call a flashover or a backdraft.

“This evening should have been a moment of celebration and coming together, but it turned into a nightmare,” said Mathias Rénard, head of the regional government.

The injured were so numerous that the intensive care unit and operating theater at the regional hospital quickly hit full capacity, Rénard said.

Helicopters and ambulances rushed to the scene to assist victims, including some from different countries, officials said.

“We are devastated,” Frédéric Gisler, commander of the Valais Cantonal police, said during a news conference.

The injured were so numerous that the intensive care unit and operating theater at the regional hospital quickly hit full capacity, according to regional councilor Mathias Rénard.

The municipality had banned New Year’s Eve fireworks due to lack of rainfall in the past month, according to its website.

In a region busy with tourists skiing on the slopes, the authorities have called on the local population to show caution in the coming days to avoid any accidents that could require medical resources that are already overwhelmed.

The community is in the heart of the Swiss Alps, just 40 kilometers (25 miles) north of the Matterhorn, one of the most famous Alpine peaks, and 130 kilometers (81 miles) south of Zurich.

The highest point of Crans-Montana, with a population of 10,000 residents, sits at an elevation of nearly 3,000 meters (1.86 miles), according to the municipality’s website, which says officials are seeking to move away from a tourist culture and attract high-tech research and development.

The municipality was formed only nine years ago, on Jan. 1, 2017, when multiple towns merged. It extends over 590 hectares (2.3 square miles) from the Rhône Valley to the Plaine Morte glacier.

Crans-Montana is one of the top race venues on the World Cup circuit in Alpine skiing and will host the next world championships over two weeks in February 2027.

In four weeks’ time, the resort will host the best men’s and women’s downhill racers for their last events before going to the Milan Cortina Olympics, which open Feb. 6.

Crans-Montana also is a premium venue in international golf. The Crans-sur-Sierre club stages the European Masters each August on a picturesque course with stunning mountains views.