Crypto Industry Must Protect Investors From Violent Crime
The cryptocurrency sector must address the rising threat of physical violence, known as “wrench attacks,” against digital asset holders, according to Singapore's Asia Academy of Digital Economics.
Surge in Violent Crypto Robberies
The cryptocurrency industry faces a critical challenge: the increasing wealth of digital asset owners makes them appealing targets for violent criminals. Tan Poh Hwee, president of the Singapore-based Asia Academy of Digital Economics, highlighted this vulnerability on 10 October 2026.
He noted a rise in “wrench attacks,” where physical threats or violence coerce individuals into surrendering their cryptocurrency. This exposes a significant gap in current security measures, which often protect digital wallets from hacking but leave their owners physically exposed.
Industry Responsibility for Physical Safety
Current approaches to financial security are inadequate when they treat the physical safety of asset holders as a personal concern, Tan Poh Hwee stated. He argued that the industry must accept responsibility for developing products and services that account for the reality of physical coercion.
When a single individual can authorise the immediate transfer of substantial digital wealth, both that person and their family become potential targets for criminal activity.
Maturing Financial Ecosystems
For any financial ecosystem to be considered mature, it must provide credible methods for cryptocurrency investors and their families to remain safe. Tan Poh Hwee, who is also a corresponding fellow of the National Academy of Artificial Intelligence, emphasised that the promise of financial autonomy through digital assets comes with a cost.
This cost is the heightened risk of violent crime, which the industry needs to actively mitigate through better design and protocols.
Asian cryptocurrency exchanges and service providers may need to re-evaluate their security offerings beyond cyber protection. This could involve exploring features like multi-signature requirements for large transfers or enhanced identity verification linked to physical security protocols.
Investors in markets like Singapore and Hong Kong, where digital asset adoption is high, will likely demand more robust physical safeguards. Companies that innovate in this space could gain a competitive edge by offering a more comprehensive security framework for their clients.
This article is journalism, not investment advice; consult a licensed professional before making financial decisions. Market data is indicative, may be delayed, and should be verified with your broker or exchange before use.
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