Crypto Security Under Attack: Hundreds of Wallets Hacked and Physical Assaults at Record High

Mass Wallet Attack Currently Underway

A large-scale cyberattack on crypto wallets is currently in progress. Onchain analyst ZachXBT reported via his Telegram channel that hundreds of wallets across various EVM-compatible blockchains are being systematically drained ^[1].

The attacker is targeting a multitude of individual wallets, with predominantly amounts under $2,000 being stolen per affected address ^[1]. Despite the comparatively small individual losses, the total damage continues to accumulate due to the high number of attacks. According to current findings, the damage so far amounts to approximately $107,000, with ZachXBT noting that further outflows cannot be ruled out ^[1].

Neither the identity of the attacker nor the exact attack vector are known at this time. The technical entry point has also not yet been identified. ZachXBT only referenced a suspicious address that is allegedly connected to the outflows ^[1].

Trust Wallet Incident and December Damage Assessment

The current attack is part of a series of security incidents in December. Blockchain security firm PeckShield recorded approximately 26 major crypto attacks in this month alone, with total damages of about $76 million ^[1]. This represents a decline of around sixty percent compared to November, when losses of $194.27 million were registered ^[1].

Prominent incidents included an attack on Trust Wallet during the Christmas holidays. A specific version of the browser extension was exploited, resulting in damages of approximately seven million dollars. Trust Wallet has stated that it has now begun compensating affected users ^[1].

Physical Violence Against Crypto Investors Reaches Record High

Parallel to digital threats, physical violence against crypto investors reached an alarming peak in 2025. According to TRM Labs, approximately sixty so-called "$5 wrench attacks" were registered worldwide, in which perpetrators use physical violence or threats to gain access to wallets or private keys ^[2].

Ari Redbord, Global Head of Policy at TRM Labs, assumes a significantly higher number of unreported cases, as many incidents are not officially recorded as crypto crimes or are not reported at all ^[2]. An analysis by Bitcoin developer and security expert Jameson Lopp even identified a total of 71 known cases in 2025, compared to around 40 documented attacks in 2024 ^[2].

France Particularly Affected

France has been particularly hard hit, accounting for approximately one-third of known cases according to Interior Minister Bruno Retailleau ^[2]. Among the most notable incidents is the kidnapping of Ledger co-founder David Balland and his wife in January ^[2].

Security experts attribute the increase to factors including lack of data protection, public displays of wealth, and extensive data breaches at crypto companies that compromised sensitive customer data ^[2]. According to experts, the attacks not only pose a financial risk but directly endanger the lives and safety of those affected. This brings physical security measures into sharper focus for the crypto industry ^[2].