A former Los Angeles Police Department (LAPD) officer has been found guilty of a daring and brazen robbery, in which he held a teenage crypto owner at gunpoint and stole a hard drive containing $350,000 worth of Bitcoin. But here's where it gets controversial... The crime is the latest in a series of so-called "$5 wrench attacks" that have soared by 75% year-on-year, according to a recent study. And this is the part most people miss... Security professionals recommend that crypto holders adopt a variety of tactics to protect themselves against coercion, including multisig wallets, cryptographic techniques, decoy wallets, and privacy coins. But is this enough to deter these increasingly sophisticated attacks? The case of the former LAPD officer is a stark reminder of the risks crypto holders face, and the need for greater awareness and protection measures. So, what can be done to combat these attacks and ensure the safety of crypto holders? The jury found Eric Halem, 38, guilty of kidnapping and robbery, according to a report in the Los Angeles Times. Halem and his alleged accomplices posed as police to gain entry to the victim's high-rise apartment, before restraining him and his girlfriend and threatening to shoot him if he refused to give up the hard drive containing his Bitcoin keys. The victim, who testified under his first name, Daniel, admitted on the stand to having obtained his crypto holdings through fraud. Halem's attorney, Megan Maitia, described her client and his alleged associates as "knuckleheads," questioning why they had, per trial testimony, driven to the scene of the crime in a green Range Rover and an orange Lamborghini Urus owned by his car rental company and equipped with GPS trackers. In text messages shared after the robbery, Halem said he was monitoring police traffic and that "Someone I know fed wise called me." Halem's co-defendants have yet to stand trial and maintain their innocence. Crypto "wrench attacks" are a growing concern, with victims coerced into giving up access to their crypto through physical violence and threats. According to a February 2026 study by blockchain security firm CertiK, physical attacks on crypto holders soared by 75% in 2025, with confirmed losses topping $40.9 million. Cases include the January 2025 kidnapping of Ledger co-founder David Balland and his wife in France, which has emerged as the epicenter of violent attacks on crypto holders. Balland's ordeal saw his attackers sever one of his fingers and demand a €10 million ransom in crypto. Other recent incidents have seen crypto holders in the UK, Israel, and Canada targeted by attackers. Security professionals recommend that crypto holders adopt a variety of tactics to protect themselves against coercion, including multisig wallets, cryptographic techniques, decoy wallets, and privacy coins. But is this enough to deter these increasingly sophisticated attacks? The case of the former LAPD officer is a stark reminder of the risks crypto holders face, and the need for greater awareness and protection measures. So, what can be done to combat these attacks and ensure the safety of crypto holders? The jury's verdict sends a clear message: these crimes will not be tolerated. But it also highlights the need for greater awareness and protection measures to safeguard crypto holders from these increasingly sophisticated attacks.
