A cryptocurrency investor suffered a staggering $6.7 million loss after a suspected physical attack, with stolen funds routed through the sanctioned mixer Tornado Cash. According to on-chain investigator Specter, the attacker withdrew 1,554 ETH (worth roughly $3.3 million at the time) and 10.5 BTC from the victim’s Kraken account, while another 34.1 cbBTC (approximately $2.6 million) was taken from a linked Coinbase account. Specter believes the account holder was physically coerced, though no official law enforcement statement has been released.
Blockchain records show that almost $5.3 million of the loot was quickly deposited into Tornado Cash, reviving scrutiny of the privacy tool long criticized for enabling money laundering. The theft highlights a disturbing rise in “wrench attacks”—violent or coercive methods used to force crypto holders to surrender private keys or approve transactions. Crypto.news reported that France alone recorded 41 crypto-linked kidnappings in 2026, roughly one every 2.5 days.
In response to the escalating threats, major exchanges are dramatically increasing personal security budgets. Coinbase disclosed in its latest proxy filing that it spent $8.7 million on CEO Brian Armstrong’s security in 2025, up from $6.2 million the previous year, calling the expenses “reasonable and necessary.” Gemini has entered a formal agreement with Winklevoss Capital Management, paying a fixed $400,000 monthly for executive protection, secure transport, and risk advisory services covering the CEO, president, their families, and other key individuals. The industry’s shift reflects a grim reality where safeguarding executives and customers now goes far beyond cyber defenses.
