Rising cryptocurrency prices and the irreversible nature of blockchain transactions have triggered a disturbing shift in crime: small and mid-level crypto investors are increasingly being targeted through violent home invasions, kidnappings, and physical coercion, said a Bloomberg report.
Once confined to online hacks and SIM-swapping schemes, crypto crime has moved offline. Criminal groups now bypass digital defenses altogether, forcing victims at gunpoint to unlock wallets and transfer funds in real time. Since 2020, more than 215 physical crypto attacks have been documented globally, with incidents nearly doubling in 2025 alone, according to security researchers.
One such case involved Julia Goodwin, a Florida retiree who had invested heavily in cryptocurrency after selling rental properties. After losing most of her savings to a targeted hack in 2021, she survived a second ordeal in 2022 when masked attackers smashed into her home, held her at gunpoint, and demanded access to her crypto wallets. The assailants had surveilled her house, studied torture methods, and prepared for prolonged coercion.
The attackers fled only after Julia’s husband—suffering from advanced Parkinson’s disease, managed to trigger a panic alarm. It was the first failed hit in what investigators later described as one of the most prolific violent crypto crime sprees in the US, spanning multiple states.
Court records revealed a two-tier criminal structure: overseas “tech” operatives identified crypto holders through data leaks and exchange records, while local crews carried out home invasions. The group’s chilling motto, later disclosed at trial, summed up the strategy: “If we cannot hack them, we rob them.”
Victims were not ultra-rich influencers or crypto executives, but ordinary people—teachers, retirees, construction workers—holding modest but meaningful crypto savings. In North Carolina, a retired physics teacher and his wife were beaten in their home while attackers forced transfers from their Coinbase accounts. In Texas, a victim was tortured as criminals searched for a hardware wallet buried in his backyard.
Despite the scale of violence, protections remain thin. Crypto platforms typically do not cover losses from physical coercion, often referred to as “wrench attacks.” While some victims were partially reimbursed under premium account programs, industry policies largely exclude transactions authorized under duress.
Law enforcement eventually dismantled the gang, arresting more than a dozen members. The ringleader received a 47-year prison sentence, but many victims say justice has offered little closure. Financial restitution remains uncertain, and the psychological scars endure.
Experts warn that as crypto adoption expands—particularly among middle-class investors—the pool of potential targets will only grow. Without stronger consumer protections and better personal security awareness, the promise of decentralized finance may continue to come with a dangerous, real-world cost.
For Julia, the experience permanently altered her sense of safety. Yet she still believes in blockchain’s future—while acknowledging the risks. “I never imagined investing could put my life in danger,” she says. “Now I know it can.”
