Wrench Attacks on Crypto Executives Increase, Prompts New Insured Security Measures

Seattle, Washington – The rise in violent attacks targeting individuals holding cryptocurrencies has become a growing concern in the digital asset world. The Paris-based crypto wallet firm Bitcoin and other cryptocurrencies have seen a surge in physical coercion incidents, with 24 attacks reported in 2024 and eight in January 2025 alone. The actual number of attacks is believed to be higher, as many victims may choose not to report them.

While blockchain technology, particularly in the case of Bitcoin, is considered highly secure against cyberattacks, criminals have resorted to physical force to steal digital assets. Known as wrench attacks, these incidents involve criminals using violence to coerce victims into transferring their cryptocurrencies to an overseas wallet. This method bypasses the need for the criminals to physically carry or transport the stolen goods, making it an attractive option for thieves.

In response to these alarming trends, Becca Rubenfeld, a former Starbucks executive from Seattle, founded AnchorWatch in 2022. The startup assists Bitcoin owners in securely storing and insuring their digital assets, including protection against wrench attacks. Rubenfeld successfully persuaded insurance giant Lloyd’s of London to include coverage for such attacks in the policies offered by AnchorWatch, allowing customers to insure their Bitcoin against violent robberies.

The process of obtaining wrench attack insurance involves more than payment of a fee; policyholders must also work with AnchorWatch to implement additional security measures for their digital assets. This includes using multi-sig technology, which requires multiple approvals before any Bitcoin can be moved, as well as time locks. In the event of a successful theft, the policy provides compensation of up to $100 million.

Despite the increasing prevalence of wrench attacks, Rubenfeld emphasized the importance of safeguarding personal information related to Bitcoin holdings to avoid becoming a target. Following simple privacy practices, such as refraining from disclosing wealth or engaging in high-risk activities, can help Bitcoin owners protect their assets from potential threats.

By offering innovative solutions to address the risks associated with cryptocurrency ownership, startups like AnchorWatch are working to create a safer environment for digital asset investors. As the crypto industry continues to evolve, it is crucial for individuals to take proactive steps to secure their investments and guard against malicious attacks.