Cryptocurrency crime is no longer limited to exchange hacks, phishing attacks, and stolen passwords. A new Chainalysis report says criminals are increasingly using kidnappings, home invasions, hostage situations, and threats against family members to force crypto holders to transfer digital assets.
The warning highlights a major change in the crypto crime landscape. Criminals are not only attacking computer systems. They are also targeting people who control large amounts of cryptocurrency through self-custody wallets.
Physical Crypto Attacks Are Rising
According to Chainalysis, more than $30 million was stolen through successful physical attacks during the first half of 2026. These cases involved criminals forcing victims to transfer Bitcoin, stablecoins, or other digital assets under pressure.
If the current pace continues, the total amount stolen through violent Crypto Crime could surpass the $58 million reported for all of 2025. However, Chainalysis noted that the figure only includes publicly reported incidents. The true value could be higher because many victims may avoid reporting attacks due to safety concerns, fear of further threats, or privacy issues.
Crypto is attractive to criminals because transactions can happen quickly. A victim with access to a self-custody wallet may be able to send funds within seconds. Unlike a traditional bank transfer, a blockchain transaction may be difficult to reverse once it has been confirmed.
Self-Custody Creates New Risks
Self-custody gives crypto users direct control over their private keys and wallet funds. This removes the need for a bank or exchange to approve every transaction. It also means that the user is responsible for protecting the wallet, recovery phrase, and access devices.
That level of control can become a serious security risk when criminals identify a person as a crypto holder. Instead of trying to break into an exchange, attackers may attempt to obtain the victim’s recovery phrase or force them to approve a transaction.
This is sometimes called a “wrench attack.” The term refers to a physical attack designed to bypass digital security by threatening or harming a person who controls cryptocurrency.
The growth of public blockchain data may also help criminals identify targets. Wallet activity, social media posts, leaked customer data, and public claims about crypto wealth can provide clues about a person’s holdings or location.
Home Invasions Increase
Kidnappings remained the most common type of documented physical crypto attack, but home invasions grew sharply. Chainalysis said home invasions represented 37% of reported incidents through the middle of 2026, compared with 14% in 2025.
Criminals may view a victim’s home as an easier place to apply pressure. They can use personal information to locate a holder and attempt to force a transfer without moving the victim to another location.
The report also found that attackers increasingly target relatives, friends, and other close contacts. Family members or associates accounted for about 25% to 30% of documented incidents by early 2026. In France, more than 40% of reported cases involved someone connected to the crypto holder rather than the holder directly.
This trend shows that crypto security is not only an individual concern. A person’s family and close social network may also become targets if criminals believe they can use those relationships to gain access to digital funds.
France Records a Surge in Cases
France has recorded the highest number of publicly known violent Crypto Crime incidents since 2023. Chainalysis reported 30 cases in France through mid-2026, compared with 19 cases during the whole of 2025.
French officials have responded by treating many of these attacks as organized crime investigations. Authorities have reportedly made around 200 arrests, issued 88 indictments, and placed 75 suspects in pretrial detention by the middle of 2026.
The report also pointed to alleged exposure of personal data belonging to wealthy crypto holders. Such information may include names, home addresses, phone numbers, tax details, and estimates of digital asset holdings. Chainalysis did not establish a direct link between every data exposure and individual attack, but leaked information can make it easier for criminals to identify potential victims.
Attackers Still Leave Blockchain Evidence
Physical crypto attacks may involve violence or threats, but the financial transfers still take place on public blockchains. This creates a record that investigators can analyze.
Chainalysis said only 12 of 46 documented violent theft attempts resulted in victims surrendering funds through late June 2026. That produced a success rate of about 26%, compared with 49% in 2025 and 67% in 2024.
When failed attempts, blocked transactions, and recovered funds are included, the value connected to violent incidents reached about $107 million during the first half of 2026.
Criminals may attempt to hide stolen funds by moving them through decentralized exchanges, bridges, intermediary wallets, or instant swap services. Less experienced attackers may send the funds directly to a centralized exchange, where compliance teams can freeze the assets or connect the transaction to a known identity.
Blockchain analysis can help investigators follow these transfers. Even when criminals use several wallets, each transaction can create a permanent trail that may reveal how funds moved and where they were eventually sent.
Online Crime Remains the Biggest Threat
The rise in physical attacks does not mean that online crypto crime is disappearing. Cybercrime still accounts for most illicit activity connected to digital assets.
Chainalysis estimated that hackers stole $3.4 billion in cryptocurrency, scams caused $17 billion in losses, and ransomware generated about $820 million in 2025.
The firm has also reported rapid growth in impersonation scams and the use of artificial intelligence. Its 2026 crypto crime research estimated that scams and fraud stole $17 billion in 2025, while impersonation scams grew by more than 1,400% year over year. AI-linked scams were estimated to generate 4.5 times more revenue per operation than scams without clear links to AI tools.
These figures show that crypto crime is becoming more organized across both digital and physical channels. Criminal groups may combine leaked personal data, social engineering, hacking tools, money laundering services, and real-world threats.
How Crypto Holders Can Reduce Exposure
Crypto users cannot remove every risk, but they can avoid making themselves easy targets. They should avoid publicly sharing wallet balances, recovery phrases, home addresses, travel plans, or details about large transactions.
Using multisignature wallets can also reduce the danger of a single person controlling every transfer. A multisignature setup requires approval from more than one key, making it harder for an attacker to force an immediate transaction.
Other useful precautions include:
- Keeping significant funds in wallets that are not connected to daily devices.
- Separating personal identity from public wallet addresses where possible.
- Using transaction limits and time delays for large transfers.
- Avoiding public claims about cryptocurrency wealth.
- Creating a family emergency plan without sharing private keys or recovery phrases.
- Contacting local authorities immediately if there is a physical threat.
Crypto Security Is Becoming a Personal Safety Issue
Chainalysis’ findings show that crypto crime has moved beyond the screen. While exchange hacks and online scams remain major threats, criminals are increasingly willing to target individuals, homes, and families.
Blockchain transparency gives investigators a way to trace stolen funds, but prevention remains critical. As digital assets become more valuable and easier to transfer, crypto holders must protect not only their wallets but also the personal information that could make them targets.
