Cryptocurrency-related crime has emerged as one of the fastest-growing forms of financial fraud worldwide. Using methods that are anything but new—hacking, impersonation, deception and increasingly physical intimidation—criminals have stolen more than ₹58,000 crore from ordinary investors alone. The tools may be digital, but the playbook remains familiar.
The greatest irony of crypto theft lies in its transparency. Every transaction is permanently recorded on the blockchain, a public digital ledger. Stolen funds can often be seen moving across wallets for years. Yet for victims, recovery is almost impossible.
One victim said hackers drained her cryptocurrency wallet, wiping out assets worth nearly ₹2.6 crore. “The money was visible on the blockchain the entire time,” she said, “but there was no legal or technical way to get it back.”
Certified Cyber Crime Investigator Course Launched by Centre for Police Technology
When lifetime savings disappear overnight
The victim and her partner had invested steadily for seven years in a cryptocurrency called Cardano. They were not wealthy investors, but believed digital assets could deliver better returns than traditional savings. They took precautions to protect their private keys, but hackers ultimately accessed their cloud storage, where sensitive wallet information was stored.
In February 2024, after a small test transaction, the criminals transferred the entire holding into wallets under their control. For months, the couple watched helplessly as the funds moved between different wallets—fully visible, yet legally untouchable.
A significant portion of the money had come from the sale of a family home following a bereavement. The loss was not only financial but deeply emotional.
A global surge in crypto crime
According to blockchain intelligence firm Chainalysis, total global cryptocurrency theft in 2025 exceeded ₹2.8 lakh crore. Since 2020, annual crypto theft has consistently remained above ₹2.5 lakh crore.
The data also shows a sharp rise in attacks targeting individual investors. While around 40,000 such cases were recorded in 2022, the number doubled to approximately 80,000 by 2025. Analysts estimate that nearly 20% of all stolen crypto—about ₹59,000 crore—was taken directly from individuals through hacking, scams or coercion. The true figure may be significantly higher, as many cases go unreported.
Big hacks, no protection for individuals
Large cryptocurrency exchanges have suffered massive cyber breaches, but these platforms often absorb losses internally. Individual investors, however, are typically left without compensation or recourse.
In one instance, a crypto exchange lost ₹12,450 crore to hackers in February 2025. In another case, a criminal network defrauded investors of ₹21,500 crore between 2023 and 2025. Investigations revealed that much of the stolen money was spent on private jets, luxury cars, designer goods and extravagant lifestyles.
From cybercrime to physical violence
As crypto wealth has grown, crime has moved beyond the digital realm. Incidents reported across multiple countries include kidnappings, armed assaults and forced cryptocurrency transfers at knifepoint. In several cases, victims were compelled to transfer digital assets worth ₹12–13 crore.
Within the crypto community, such crimes are referred to as “wrench attacks”—a term that reflects how physical violence is used to bypass even the strongest technical security.
Why individuals have become prime targets
Cybersecurity experts point to several reasons why criminals are increasingly focusing on individuals rather than exchanges:
- More people now hold high-value crypto assets personally
- Crypto wallets have no upper limit on how much they can store
- Leaked customer data from companies has made it easier to identify wealthy targets
In one case, a hacker admitted paying ₹2.5 crore for stolen customer data and later using it to scam victims out of ₹12 crore in cryptocurrency.
‘Be your own bank’—without a safety net
Self-custody wallets, a cornerstone of crypto ideology, come with no bank oversight, no regulator and no consumer protection. If funds are stolen, there is no central authority to approach—unlike traditional banking systems, where fraud victims may receive reimbursement.
Experts warn that crypto’s promise of financial freedom comes with absolute personal responsibility. “You may control your money,” one analyst said, “but you also carry all the risk.”
A harsh lesson, yet the appeal endures
Despite devastating losses, many victims say they would still consider returning to cryptocurrency if given another chance. Their responses highlight the powerful allure of digital assets—and the severe risks embedded within the system.
About the author – Rehan Khan is a law student and legal journalist with a keen interest in cybercrime, digital fraud, and emerging technology laws. He writes on the intersection of law, cybersecurity, and online safety, focusing on developments that impact individuals and institutions in India.
