Physical Attacks on Cryptocurrency Holders Surge, Highlighting Security Gaps
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Jan 04 2026- Surge in Violent Incidents: Data from Dragonfly indicates that serious violent incidents, including kidnappings and home invasions, have steadily increased since 2020, with 2025 projected to see the highest concentration, highlighting escalating real-world security risks despite improvements in digital security measures.
- Concentration of Risk: While the number of attacks per million users has declined, the absolute number of incidents and the intensity of violence are rising, indicating a paradox where the growth of cryptocurrency increases risk for a smaller subset of visible holders, thus concentrating danger rather than dispersing it.
- Challenges of Self-Custody: Industry participants are increasingly recognizing that physical attacks represent a human security issue, as existing protections like multisignature wallets and hardware devices offer limited defense against coercion, leading to a growing demand for features that minimize physical attack surfaces.
- Regulatory and Adoption Implications: As wealth migrates to bearer assets, regulators must address personal safety risks alongside exchange security, prompting insurers and custodians to reassess coverage models, indicating that future crypto infrastructure will prioritize personal safety and plausible deniability alongside privacy and compliance.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
