In 2025, incidents of violent attacks against Crypto Assets holders surged, with KYC data leaks becoming a breeding ground for crime.

The founder of hardware wallet manufacturer SatoshiLabs, Alena Vranova, issued an urgent warning at the Baltic Badger 2025 conference in Latvia: "Wrench attacks" (kidnapping, torture, extortion of private keys) targeting crypto asset holders are increasing at an alarming rate, and 2025 could become the most dangerous year in history. Over 80 million users' identification information has been leaked, including 2.2 million with home addresses. The combination of KYC data from centralized exchanges and on-chain analysis tools poses unprecedented physical security threats to global holders. This article reveals crime data, causes, and strategies for upgrading security protection.

Wrench attacks rampant: at least one cryptocurrency ransom case every week Vlanova revealed at the conference: At least one kidnapping, torture, extortion, or more serious crime targeting Bitcoin holders occurs globally every week. Contrary to common belief, the victims are not limited to Bitcoin OG whales - documented cases include a kidnapping for $6,000 worth of Crypto Assets and a murder for $50,000 in Crypto Assets.

Industry data shows that 2025 could become the most dangerous year in history. The Chainalysis report indicates that the number of wrench attacks has approached historical peaks, and if the trend continues, the number of cases by the end of the year could double.

KYC Data Breach: 80 Million User Information Becomes Criminal "Shopping List" Violent attacks against crypto holders have surged, primarily due to large-scale data breaches of centralized services. Vlanova reveals a shocking reality: over 80 million crypto assets users' identification information is currently exposed online, with 2.2 million containing detailed home addresses.

The vast majority of leaks come from centralized exchanges and wallet service providers that are subject to KYC (Know Your Customer) regulations. These regulations, established for anti-money laundering, require platforms to store sensitive information such as users' names, phone numbers, identification documents, and addresses, which have become "precise positioning tools" for criminals.

The consequences have far exceeded theoretical risks:

• In May 2025, the American exchange Coinbase confirmed that hackers stole some customers' names and address information.
• In June, cybersecurity media Cybernews discovered a database containing 16 billion user credentials from Apple, Facebook, and Google, which includes passwords, geographical locations, and associated email names that can pinpoint cryptocurrency investors.

Criminal Methods Upgraded: On-chain Data Tracking + Physical Violence Extortion Criminals are combining stolen personal information with blockchain analysis tools to precisely identify targets who hold large amounts of Bitcoin or other Crypto Assets. After locking onto victims, they may implement:

1. Targeted phishing attack
2. SIM Card Hijacking Attack
3. The most extreme case: coercing the victim to hand over the Private Key through physical violence.

Flaranova emphasized that bull markets attract a large number of new investors with insufficient operational security experience, and criminal organizations see this as a good opportunity to profit through theft and extortion. Even more severe is that as the valuation of crypto assets rises and KYC databases continue to be leaked, the threats faced by global Bitcoin holders will increase exponentially.

Encryption Community Security Upgrade: Protection Strategies from Whales to Retail Investors Faced with a surge in violent crime, the crypto assets community is comprehensively enhancing physical security and operational security levels:

• High net worth individuals: Hire private security teams, reinforce residential security systems, use privacy tools to conceal assets
• Ordinary Retail Investors: Reduce the public exposure of Crypto Assets, adopt non-custodial Wallets, decentralize asset storage, and avoid publicly discussing investment scale.

Industry security experts propose key "Operational Security (Opsec)" guidelines:

• Use a unique high-strength password
• Enable Multi-Factor Authentication (MFA)
• Regularly check if personal information has been leaked
• Beware of unusual contact requests

Conclusion: Digital gold turns into blood-colored gold, and security protection becomes a survival necessity If the current trend continues, the number of violent attacks against crypto assets holders in 2025 may break historical records by two times. Once hailed as "digital gold," crypto assets are now facing a bloody crisis due to KYC data leaks and on-chain transparency. When $6000 in assets can trigger a kidnapping case, every holder must elevate their security measures to the highest level – in a decentralized world, safeguarding the Private Key is not just about wealth, but also personal freedom. The global crypto community urgently needs to establish a collaborative defense mechanism, otherwise the shadow of wrench attacks will loom over the entire industry.