Physical Attacks on Crypto Holders Rise with Bull Markets, Data Shows

Physical attacks targeting cryptocurrency holders surge during bull markets and periods of heightened over-the-counter trading, according to data compiled by security researcher Jameson Lopp^[1].

The research shows that approximately 25% of incidents are home invasions, often enabled by leaked Know Your Customer (KYC) data or publicly available information. Kidnappings account for another 23% of cases. Two-thirds of attacks successfully result in asset theft, though around 60% of identified perpetrators are eventually apprehended^[1].

While the United States leads in absolute case numbers, the per-capita risk is higher in the United Arab Emirates and Iceland^[1].

The findings have sparked debate over emerging security solutions like duress wallets and panic gestures, though Lopp notes there is insufficient data to evaluate their effectiveness. Some victims have turned their experiences into business ventures, developing biometric custody systems designed to protect users during physical coercion.

As physical threats increase alongside stricter privacy regulations, even experienced Bitcoin advocates are reconsidering self-custody arrangements. However, Lopp emphasizes that the most effective defense remains simple: avoiding public disclosure of cryptocurrency holdings while using real identities^[1].