The cryptocurrency industry’s rapid growth has brought new risks, including a surge in violent robberies targeting digital asset holders. Tan Poh Hwee, president of the Asia Academy of Digital Economics, warns that the industry must do more to protect users from physical threats. Currently, the focus is on securing digital wallets, but criminals are increasingly using coercion to force victims to transfer their crypto holdings.
Known as “wrench attacks,” these incidents involve threats or violence to compel victims to hand over their cryptocurrency. Unlike hacking, which targets digital vulnerabilities, these attacks exploit human weaknesses. A single person with access to a wallet can authorize large transfers, making them and their families prime targets for criminals.
The industry must take responsibility for designing safer products and services that account for these risks. Treating physical safety as a personal matter is no longer sufficient, Poh Hwee argues. As cryptocurrency adoption grows, so will the need for comprehensive security measures that protect both digital and physical assets.