UPDATE: A shocking home invasion in San Francisco has resulted in the theft of $11 million in cryptocurrency, marking a disturbing trend of physical attacks targeting crypto holders. Early this morning, a man disguised as a delivery driver gained entry to a home in the Mission Dolores neighborhood, leading to a terrifying ordeal for the resident, identified only as Joshua.
Joshua was coerced at gunpoint, bound with duct tape, and forced to unlock access to his substantial crypto assets in a brazen act that has alarmed the crypto community. This incident, described by Y Combinator’s Garry Tan on social media, underscores the rising prevalence of what experts are calling the $5 wrench attack—a term for assaults aimed at extracting crypto wealth through intimidation.
According to Jameson Lopp, co-founder of Casa, there has been a significant increase in such attacks globally. Lopp has been documenting this surge, revealing a troubling correlation between rising bitcoin prices and the frequency of these violent crimes. At the Bitcoin 2025 conference earlier this year, he warned that the current year is on track to break records for these types of incidents, with kidnappings and home invasions becoming alarmingly common among crypto users.
This violent trend is not isolated to San Francisco. Just weeks prior, a 35-year-old Chinese national in Bangkok was abducted by assailants who violently demanded 50,000 baht and 9,375 USDT in cryptocurrency. Similarly, a family in British Columbia endured a harrowing 13-hour nightmare, held captive by impostors posing as postal workers, ultimately forced to surrender $2 million in digital assets.
In another incident, a group of five individuals in Oxfordshire, England, faced masked intruders who stole a £448,000 Rolex and coerced one victim into transferring £1.1 million in cryptocurrency. The growing frequency of these attacks raises serious concerns about the safety and security of self-custody in the crypto space.
Lopp emphasizes the importance of robust security measures, including multisignature vaults and diversified private keys, to protect crypto assets. As these attacks escalate in sophistication, crypto users must reevaluate their security practices. The allure of instant cryptocurrency transfers presents a tempting target for criminals who understand the vulnerabilities of traditional banking systems.
While many crypto holders face the dilemma of security versus convenience, some are opting for third-party custodians like Coinbase or BlackRock’s iShares Bitcoin Trust to mitigate risks. However, this choice raises questions about the original ethos of Bitcoin as a decentralized currency, pushing users toward a reliance on centralized platforms at the expense of autonomy.
The urgency of these developments cannot be overstated. As reports of violent thefts become more frequent, the crypto community must act swiftly to implement protective measures. For those invested in cryptocurrencies, the recent surge in physical attacks serves as a stark reminder of the risks involved in self-custody.
Stay tuned for further updates on this developing story as authorities continue to investigate these alarming incidents.
