Know What's Happening in Crypto

When the Wrench Comes for the Wallet: Why Bitcoin’s Biggest Believers Are Handing over Their Keys

Physical "wrench" attacks on Bitcoin holders have surged, with over 200 documented incidents across 34 countries and 52 cases reported in 2025 alone—a 169% rise since February. The growing threat has prompted prominent early adopters, including analysts Willy Woo and the Bitcoin Family, to abandon solo hardware wallets in favor of multi‑signature, hybrid custodial solutions or regulated vehicles such as spot Bitcoin ETFs, which have attracted more than $3 billion via in‑kind transfers to BlackRock since July. This shift reflects a broader migration of high‑net‑worth crypto families toward institutional custody to mitigate personal safety risks, inheritance challenges, and operational complexity, while still preserving some degree of control through collaborative custody models.