The Journal: Severed Fingers and Wrench Attacks — A New Era in Crypto Crime
Released June 20, 2025 | Hosts: Ryan Knutson and Jessica Mendoza | Co-produced by Spotify and The Wall Street Journal
Introduction
In the latest episode of The Journal, hosted by Ryan Knutson and Jessica Mendoza, the discussion delves into the alarming rise of violent crimes targeting cryptocurrency holders, a phenomenon now termed "wrench attacks." These attacks represent a dangerous convergence of physical violence and digital wealth, highlighting the vulnerabilities within the burgeoning crypto ecosystem.
Understanding Wrench Attacks
Definition and Origin
Wrench attacks, officially known as "$5 wrench attacks," are a modern twist on traditional kidnapping for ransom, where perpetrators seek payment in cryptocurrencies instead of conventional currencies. The term originates from an xKCD comic strip that juxtaposes the sophisticated, unattainable methods of hacking crypto accounts with the blunt, violent approach of using a literal wrench to extract passwords (04:00–04:55).
Quote:
"The full term for a wrench attack is a $5 wrench attack... it's the brute force approach."
— Sam Schechner [04:38]
High-Profile Cases Illustrating Wrench Attacks
1. The Paris Kidnapping Attempt
Early on a Tuesday morning in Paris, attackers in black masks attempted to abduct a 34-year-old woman linked to Paymium, a French cryptocurrency exchange. The violent assault was partially captured on video, showcasing the desperate measures the assailants took to extort crypto-based ransom (00:05–02:19).
Quote:
"They pepper spray the family and try to drag her into that truck... eventually, they sped off while a bike shop owner attempted to intervene."
— Sam Schechner [00:24–01:39]
2. The David Balon and Ledger Incident
David Balon, co-founder of the prominent crypto company Ledger, was brutally abducted in central France. The kidnappers demanded a ransom of 10 million euros in Tether cryptocurrency, escalating their threats by severing Balon's pinky finger as coercion. The ordeal ended with Balon's rescue and the recovery of most of the ransom through coordinated efforts involving law enforcement and crypto exchanges (09:27–12:46).
Quote:
"Within hours of the abduction, other Ledger co-founders heard from the kidnappers demanding a ransom of 10 million euros in Tether."
— Annie Minoff [09:39]
3. Other Notable Incidents
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Manhattan Bitcoin Kidnapping: Three teenagers were arrested for attempting to rob a man of millions in cryptocurrency through kidnapping and torture.
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Estonia Escape: An Australian crypto billionaire narrowly escaped an abduction in Estonia.
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Houston Showdown: A Houston-based crypto influencer's husband engaged in a shootout with home invaders seeking her laptop.
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New York Crypto Kidnapping Scheme: Police arrested multiple individuals connected to a prolonged kidnapping of an Italian crypto investor.
Drivers Behind the Surge in Wrench Attacks
Rising Crypto Valuations
The significant increase in cryptocurrency values, particularly Bitcoin surpassing $100,000, has made digital assets a lucrative target for criminals (05:01–05:49).
Enhanced Security Measures Online
As crypto holders adopt self-custody solutions—storing their private keys offline to protect against online breaches—the physical security of individuals becomes the new vulnerability. Devices that keep keys air-gapped from the internet have pushed criminals towards more direct, violent methods to access digital wealth (05:49–06:13).
Quote:
"Self custody... keeps the keys offline, but it won't help if someone threatens you with violence to extract your key."
— Annie Minoff [06:13–06:26]
Target Demographics: Crypto Influencers and Executives
Visibility Breeds Vulnerability
Individuals who publicly disclose their crypto holdings, such as influencers and business executives, have become prime targets. The public display of wealth on platforms like YouTube, Twitch, and social media exposes them to heightened risks.
Case Study: Kilian Desnos (Twiffer)
Kilian Desnos, known as Twiffer, faced a kidnapping attempt after openly sharing his crypto successes online. In August 2023, his father was abducted, and a ransom video was sent, prompting Desnos to pay the ransom and secure his father's release. This incident underscored the peril of flaunting crypto wealth (07:00–08:11).
Quote:
"Being an online influencer, a crypto influencer is becoming a more dangerous game these days."
— Sam Schechner [06:37–07:00]
Law Enforcement and Criminal Networks
Arrests and Connections
Multiple arrests have been made in connection with wrench attacks, including young individuals and minors recruited online. Investigations suggest a network of organized criminals orchestrating these kidnappings, though many arrested individuals may merely be enlisted muscle rather than masterminds.
International Linkages
There are indications that orchestrators operate across borders, with suspects in one case having connections to others. For instance, a person arrested in the Kilian Desnos case was suspected of liaising with kidnappers in the Balon case, suggesting a broader, interconnected criminal network (13:12–14:37).
Quote:
"They're hired guns... the people profiting from the crime may still be at large."
— Sam Schechner [13:48–13:58]
The Double-Edged Sword of Cryptocurrency
Advantages for Criminals
Cryptocurrencies offer rapid, untraceable transfers, making them attractive for ransom payments. However, the transparent nature of blockchain transactions also provides law enforcement with critical tools to track and potentially recover stolen funds.
Recovery Success in the Balon Case
In the Balon incident, the coordinated efforts between Balon's associates and crypto exchanges enabled the rapid clawback of most of the 3 million euros sent as ransom, demonstrating that while crypto facilitates crime, it also assists in financial recovery when leveraged correctly (12:23–13:12).
Quote:
"In fact, in a lot of cryptocurrencies, every transaction is public. It actually makes it a treasure trove of information for investigators."
— Sam Schechner [12:46–13:12]
Impact on the Crypto Ecosystem and Future Outlook
Growing Criminal Attraction
As crypto becomes more mainstream and its asset values soar, it continues to attract criminal interest. The rise in high-profile wrench attacks signifies a maturing yet vulnerable ecosystem where digital and physical securities must evolve in tandem (16:05–17:15).
Security vs. Decentralization Dilemma
Cryptocurrency's foundational ethos emphasizes decentralization and minimal reliance on central authorities. However, the increase in violent crimes against individuals poses questions about the balance between maintaining decentralized principles and ensuring robust security measures to protect holders (16:05–17:15).
Quote:
"The value of assets in crypto has grown significantly. It's become a magnet for criminals... how much that vision of a distributed world coincides with the sort of security that we expect today."
— Sam Schechner [16:05–16:43]
Conclusion
The episode paints a sobering picture of the intersection between rising cryptocurrency values and the escalating creativity of criminal tactics. Wrench attacks exemplify the challenges that come with the digital age's wealth management, where traditional security measures are juxtaposed against innovative, albeit nefarious, methods of accessing digital assets. As the crypto landscape continues to evolve, so too must the strategies to protect its participants from such unprecedented threats.
This summary captures the key discussions and insights from the episode "Severed Fingers and Wrench Attacks: A New Era in Crypto Crime," providing a comprehensive overview for those who have yet to listen.