TLDR:

Physical attacks against crypto investors doubled in 2025, totaling over 215 violent incidents recorded globally.
Criminal organizations use torture and kidnapping to force access to accounts on platforms like Coinbase and Ledger devices.
Exchange platforms warn that their insurance does not cover transfers made under coercion or physical violence.

The digital asset ecosystem faces a grave threat. According to Bloomberg, cryptocurrency and wallet security is being seriously compromised as a wave of home invasions has targeted small investors, retirees, and workers, rather than just “whales.“

Since 2020, 215 physical attacks have been recorded worldwide, with a higher incidence in recent years. Security experts like Jameson Lopp suggest the real figure is considerably higher, as many victims choose to remain silent due to the trauma suffered. 

Atrocious cases in Florida and Texas reveal a pattern of extreme violence, where criminals use firearms, torture with hot tools, and kidnappings to obtain their victims’ private keys.

The Vulnerability of Retail Investors

One of the most shocking cases involved a network led by Jarod Seemungal, who coordinated assaults to steal funds from platforms like Gemini and physical devices. In one incident, attackers broke into a home in Delray Beach, pressing weapons against residents to demand access to their laptops and phones. 

Despite victims’ efforts to maintain cryptocurrency and wallet security, physical violence nullifies most technical protections.

For its part, exchanges like Coinbase clarified that their insurance policies are designed for server breaches, not personal extortion situations. Although their artificial intelligence systems can stop some irregular transactions, much of the capital is often lost before alerts are even triggered.

This trend highlights the need for users to improve cryptocurrency and wallet security by using multi-signature (multisig) accounts, shared custody, or simply maintaining a low profile regarding their investments. 

In summary, while those responsible for these crimes receive sentences of up to 47 years in prison, the financial and psychological damage to retail investors remains an open wound in the industry.

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Filed under: News - @ January 3, 2026 4:00 am