Chainalysis Warns Crypto Security Crisis: Physical Attacks Reach Record Highs in 2025
A crypto crime research firm has issued a stark warning, predicting that physical attacks targeting crypto founders and investors could surpass any previous year, Chainalysis stated in its 2025 mid-year crypto crime report.
According to the report, 29 physical incidents were recorded during the first half of 2025. If the current trend continues, this year could witness an estimated doubling of the 35 physical attacks recorded in 2021, a peak during the last major cryptocurrency market cycle.
Chainalysis attributes this surge to the dramatically rising price of Bitcoin. The firm suggests that the significant appreciation of the digital asset has encouraged opportunistic attacks, often referred to as “crypto-gifting”, directed at individuals holding substantial cryptocurrency investments.
The report highlights a strong, near-perfect correlation between physical attack frequency and Bitcoin’s forward-looking 50-day moving average. Chainalysis principal researcher Jamie Jardine noted, “Basically a one for one” relationship, meaning an increase in the moving average typically coincides with an escalation in attacks.
“That suggests that the people behind the physical attacks are baking in current prices plus expectation of future prices,” Jardine explained, elaborating that the attackers likely anticipate further gains and seek to prevent them.
The analysis points to greed as the underlying causal mechanism: “That causal mechanism is people are greedy.” Furthermore, the report acknowledges a significant underreporting issue, implying the actual number of incidents is considerably higher than publicly documented.
This escalating threat has prompted significant security enhancements within the industry. Specifically, during the EthCC Cannes conference, Chainalysis worked closely with local authorities to implement heightened security protocols, deploying additional security and police personnel to match the security standards normally associated with major international events like a film festival.
As a countermeasure, Chainalysis advises limiting public display of wealth, social media activity revealing holdings, or trading history, actions it describes as painting a target on oneself. The firm suggests conventional personal security measures may be necessary for large holders, recommending professional consultations, routine diversification, and vigilance against potential surveillance.
Jardine also suggested holding cryptocurrencies through off-chain products like Exchange-Traded Funds (ETFs) as a risk-mitigation strategy. However, he expressed concern about the trend, stating, “Hopefully that constellation of factors puts a damper on this trend, because it’s certainly an unfortunate one with a high human cost.”
