Foreign networks driving rise in France’s crypto ’wrench’ kidnappings
French police warn that crypto-related extortion kidnappings — known as “wrench attacks” — have evolved from isolated incidents into coordinated schemes run by foreign criminal networks. A confidential SIRASCO memo (15 Jan 2026) reports roughly 40 kidnapping/hostage cases in France from 1 July 2023 to 31 Dec 2025, concentrated in urban areas and the Paris region. Independent research from CertiK found 72 verified physical‑coercion incidents globally in 2025 (up ~75% year‑on‑year), with France the worst‑affected country (19 incidents) and confirmed losses exceeding $40.9m in 2025 (up 44% from 2024). Attackers identify victims — often 20–35 year‑old crypto holders, professionals or those flaunting wealth on social media — then coordinate from abroad using French recruiters and local foot soldiers. Kidnapping remains the main vector; physical assaults rose ~250% year‑on‑year. Data breaches (including tax‑agency leaks and the January Waltio hack exposing 50,000 customer emails and tax reports) have amplified targeting. Authorities say some non‑crypto victims are forced to repay debts in crypto. Arrests have increased but rarely lead to convictions, prompting calls for tougher penalties and better protection for holders. For traders, the trend raises practical risks: higher personal security and custody costs, potential relocation for executives and high‑net‑worth holders, increased demand for institutional custody and privacy tools, and possible greater regulatory and law‑enforcement scrutiny of on‑chain flows and exchanges. Monitor liquidity and custody spreads, avoid public displays of wealth, and consider insulated custody solutions as precautionary steps.
Bearish
The news increases operational, custody and regulatory risk for crypto holders and service providers, which is typically price‑negative in both the short and medium term. Short term: heightened fear and uncertainty can reduce risk appetite — holders may move assets off exchanges into cold or institutional custody, decreasing on‑exchange liquidity and raising spreads. News of physical threats to holders and executives can trigger sell‑pressure from retail and some institutional actors seeking to de‑risk, pushing prices down. Medium term: greater demand for custody, privacy and compliance services reallocates capital toward custody providers and security solutions rather than speculative markets, potentially dampening speculative flows. Increased law‑enforcement scrutiny and possible tighter KYC/AML rules raise operational costs for exchanges and DeFi interfaces, which can reduce trading volumes and margin. While targeted to individuals rather than a specific protocol, the aggregate effect raises market friction and downside risk — hence a bearish view. Offsetting factors: if demand for secure custody grows, certain custody providers or privacy‑focused projects could see inflows, but this is unlikely to fully offset the broader negative pressure on spot liquidity and sentiment.