Armed gangs target small crypto investors in US home invasions
Physical crypto theft has shifted from online hacks to violent home invasions in the US, with a single organized gang linked to multiple armed robberies, kidnappings and torture targeting ordinary investors since 2020. Bloomberg reports more than 215 physical crypto attacks worldwide since 2020, with incidents nearly doubling in 2025. Gang leader Jarod Seemungal (known as “Meow”) and associates allegedly executed raids to seize phones, laptops, and hardware wallets and coerced victims into transferring funds or opening exchange accounts. Victims include middle‑class holders, retirees, teachers and other ordinary workers; documented cases include abduction, beatings, burning with hot irons, and threats involving family members. Several perpetrators received lengthy prison sentences after FBI intervention. The wave of violence exposes limits in exchange protections: Coinbase’s insurance covers server breaches but not coercion, and its fraud systems may block some but not all illicit transfers. The story warns traders to reassess physical security for seed phrases and devices, limit on‑device private key exposure, enable withdrawal protections, and consider custody choices. Related continuing risks include thefts tied to credential breaches (e.g., LastPass) where exposed vaults have led to wallet drains. Keywords: physical crypto theft, home invasions, hardware wallet security, exchange protections, Coinbase, LastPass breach.
Bearish
Violent, targeted thefts against retail crypto holders increase perceived custody risk and may reduce on‑chain liquidity as users move funds to cold storage or custodial services with stronger protections. News of armed robberies and shortcomings in exchange coercion coverage (e.g., Coinbase insurance not covering forced transfers) undermines retail confidence, which can depress short‑term demand and increase selling pressure. Historical parallels: high‑profile security incidents (exchange hacks, major custodial failures) have produced short‑term price weakness and volatility, as retail withdraws funds and institutional counterparties reprioritize risk. In the medium term, the market may adapt — higher demand for hardware wallets, multisig and insured custody could restore confidence — but until adoption rises and protections improve, the immediate impact is likely negative for risk assets. Traders should expect increased volatility, potential short‑term selloffs in major cryptocurrencies (as retail reduces exchange exposure), and heightened premium for custody‑related services.