The cryptocurrency industry’s rapid growth has inadvertently created a new security challenge: the rise of violent crimes targeting digital asset holders. Tan Poh Hwee, president of the Asia Academy of Digital Economics, argues that the sector must address this vulnerability. The current approach, which focuses solely on digital security while leaving physical safety to individuals, is insufficient.
So-called “wrench attacks”, where criminals use physical violence or threats to coerce victims into transferring cryptocurrency, highlight this gap. Even if a digital wallet is secure against hacking, its owner remains at risk. The ability to authorize large transfers instantly makes both the holder and their family potential targets for criminal coercion.
The industry must take responsibility for designing products and services that account for these risks. Treating financial security as purely a digital issue overlooks the real-world dangers faced by cryptocurrency owners.