UPDATE: In a shocking daylight home invasion in the Mission Dolores neighborhood of San Francisco, a man impersonating a delivery driver stole $11 million in cryptocurrency from a resident identified only as Joshua. The incident unfolded when the thief coerced Joshua at his home, drawing a gun and binding him with duct tape to access his crypto assets.
This brazen attack is part of a growing trend known as the $5 wrench attack, where criminals resort to physical force to extract digital wealth. Victims are often targeted for their cryptocurrency holdings, making them vulnerable to violent theft. The alarming rise in such incidents has prompted experts to warn crypto enthusiasts about increasing risks.
Garry Tan, a prominent figure in the tech community, described Joshua as a friend and shared security footage of the suspect’s approach on X, but later deleted the post. Tan’s alarm reflects a broader concern echoed by Jameson Lopp, co-founder of Casa, who has been tracking this surge in physical attacks against crypto users. Lopp reveals that this year could witness a record number of such crimes, correlating with the fluctuating price of Bitcoin.
Just weeks ago, a similar incident occurred in Bangkok, where a 35-year-old man was violently abducted by assailants and forced to surrender both cash and cryptocurrency valued at approximately 9,375 USDT. Victims often comply under duress, fearing for their lives, and while authorities have made arrests, many criminals remain at large.
In another harrowing case in British Columbia, a family endured a 13-hour nightmare after home invaders posing as postal workers beat and bound them, ultimately stealing $2 million in digital assets. Authorities arrested one suspect, but others involved continue to evade capture.
The trend is not limited to North America. In Oxfordshire, England, five individuals were targeted by masked intruders who seized a £448,000 Rolex and forced one victim to transfer £1.1 million in cryptocurrency. This pattern of organized crime highlights the urgent need for enhanced security measures among crypto holders.
Lopp emphasizes the importance of securing private keys through multisignature vaults and inheritance protocols to prevent becoming a target for these attacks. While the rise of such violent crimes is disturbing, Lopp warns that the sophistication of these attacks is likely to increase over time.
Amid these escalating threats, many cryptocurrency holders are reconsidering their security strategies. The lure of using custodial services from exchanges and ETFs, such as Coinbase and BlackRock’s iShares Bitcoin Trust, offers a more secure alternative for asset storage. However, this shift raises concerns about relinquishing the autonomy that originally defined the cryptocurrency movement.
As criminals adapt their tactics, crypto users must remain vigilant and mindful of their security practices. The stakes are high, and individuals must weigh the benefits of convenience against the potential risks of centralized failures.
This developing situation is a stark reminder of the evolving landscape of cryptocurrency security and the urgent need for individuals to protect their assets from both digital and physical threats. Stay tuned for more updates as authorities work to address this alarming trend.
