2025 record: over 60 wrench attacks targeting crypto holders reported
Crypto analysis firm TRM Labs reports that 2025 saw a record number of physical ’wrench’ attacks targeting cryptocurrency holders, with approximately 60 incidents recorded. TRM Labs’ global policy head Ari Redbord warned the true figure may be substantially higher because many cases are logged as ordinary robberies or home invasions without noting a crypto connection, and some victims choose not to report due to uncertainty about law enforcement response. For context, TRM recorded about 41 such attacks in 2024 and about 36 in 2021. The rise in targeted physical thefts against crypto holders highlights security risks for private key custody and may influence trader behavior and custodial choices.
Bearish
An increase in targeted physical attacks against crypto holders raises immediate security concerns that can negatively affect market sentiment. When holders — especially large holders or perceived wealthy individuals — face theft risks, some may move assets into custodial services, fiat, or reduce on-chain exposure, increasing sell pressure or reducing on-chain activity. Historically, high-profile security incidents (exchanges hacked, major thefts) have correlated with short-term price weakness and increased volatility. In the short term, traders may reduce leverage and liquidate risky positions; demand for custodial and insured products may rise. Long term, persistent physical threats could slow retail adoption, push more users toward regulated custodians and hardware wallets, and increase premiums for OTC and insured custody — structural effects that can slightly dampen speculative demand but also boost institutional custody services. Overall the immediate effect is likely negative for risk assets, though the market may adapt by shifting custody preferences.