[ND Report] Targeting People Instead of Code: Crypto 'Wrench Attack' Losses Surpass $101 Million in 2026

As the security of blockchain protocols and hardware wallets strengthens, criminals are turning to 'wrench attacks,' a more direct and violent method of theft. During the first four months of 2026, cases of seizure through such physical coercion surged, with documented losses alone reaching $101 million. This is a dangerous signal that the primary vulnerability of the crypto ecosystem is no longer the code, but the individuals holding the keys.

According to the latest data from security firm CertiK, a total of 34 confirmed physical crypto attacks were recorded from January to April 2026. This is a clear indicator of a paradigm shift in crime from digital hacking to physical extortion. Instead of hacking complex cryptographic algorithms, criminal organizations now prefer to directly threaten asset holders to take control of their wallets.

Criminal organizations are now directly targeting the people behind digital wallets instead of breaking through technical security. This means the paradigm of crypto security must shift from technical defense to physical defense.

The figures for the first four months of 2026 represent an approximately 41% increase compared to the 24 cases recorded during the same period in 2025. This rapid upward trend suggests that, regardless of crypto price volatility, criminals believe the expected returns from physical attacks are higher than from technical hacking. Experts analyze that the actual scale of damage would far exceed $101 million if unreported cases were included.

Statistical Surge: Comparison of 2025 and 2026

The increase in physical attacks carries significance beyond simple numbers. While crackdowns by law enforcement agencies have occasionally contributed to temporarily reducing the number of attacks, they have proven insufficient to break the long-term growth trend. In particular, 13 cases were reported in January 2026 alone, more than double the number from the same period last year, signaling that this year will be the worst year for 'wrench attacks' on record.

• January 2026: Kidnapping of Nancy Guthrie and demand for $6 million in Bitcoin.
• March 2026: Attack targeting Sillytuna, a prominent crypto figure, in the UK.
• France: Emerging as the largest hotspot in Europe due to the concentration of major crypto companies and investors.
• Money Laundering: A significant portion of stolen assets is immediately converted to Monero (XMR), which is difficult to track.

In January 2026, Nancy Guthrie, the 84-year-old mother of American journalist Savannah Guthrie, was kidnapped and held for a $6 million Bitcoin ransom. This is a representative case showing that criminals are using 'proxy target selection,' targeting people around the asset holder rather than the holder themselves. Criminals use social media or public information to identify the target's family relationships and use them as a means of pressure.

France has become a major target for wrench attacks due to its concentration of key crypto infrastructure and high-net-worth individuals. CertiK pointed out that the active crypto community and the concentration of related companies in France are having the side effect of making it easier for criminals to identify targets. This aligns with the pattern of spreading physical security threats across Europe.

Money Laundering and Monero Rotation

Stolen assets tend to be immediately converted into privacy coins like Monero (XMR) to avoid tracking. In particular, immediately after large-scale thefts in early 2026, a phenomenon was observed where the market price of Monero surged as stolen assets flowed into it in large quantities. This asset rotation acts as a key obstacle making tracking by investigative agencies difficult.

These high-value fund conversions not only cause market volatility but also intensify conflicts between criminals exploiting privacy technology and authorities attempting to regulate it. As money laundering routes become more sophisticated, the recovery rate of stolen assets remains low, which serves as a motivation for criminals to continue physical attacks.

2026 Outlook and the Shift in Security Paradigms

CertiK predicts that if current trends continue, approximately 130 wrench attacks will occur by the end of 2026. As criminal methods become more sophisticated toward the 'human layer,' the need for security solutions that prepare for physical coercion beyond simple digital encryption is emerging. The industry recommends the introduction of duress PINs or geographically distributed multi-signature (Multisig) setups.

While there have been achievements by law enforcement, such as the recent recovery of 61,000 Bitcoins by UK authorities and the seizure of $15 billion in assets from the Prince Group, defense against physical threats remains the responsibility of the individual. The fact that security systems are bound to collapse if the human holding the key is threatened, no matter how perfect the technology, has emerged as a new challenge for the crypto market in 2026.