Crypto whale drained $25.6M as physical attacks spread: 2026 losses top $1.2B

Another crypto whale lost over $25M as investors in the sector remain under elevated risk. The unknown crypto whale’s assets, including WBTC, cbBTC, LDO, USDS, and CRV, worth $25.6M, were drained and swapped for DAI and ETH.

Analyst Specter noted that the same wallet was exploited for $24.23M back in 2023. For the 2023 case, the hack was carried out through malicious approval (phishing attack). But the attacker returned 90% of the stolen funds. 

Whether the crypto whale will get a portion of the latest $25.6M stolen funds remains to be seen. 

Crypto wrench attacks take a new twist

Strangely, the security threat goes beyond financial risk. Physical risks, assaults, and kidnapping, commonly known as wrench attacks, have been prevalent across France and other areas. 

The victims are mostly wealthy crypto owners whose data have been compromised, allowing attackers to have access to their physical home addresses. Now, even non-crypto owners are at risk, according to Jameson Lopp, chief security officer at Bitcoin wallet Casa HODL. 

He noted that a couple in France, with no crypto ownership, has been attacked three times this month.  The couple is reportedly staying in a home that was previously occupied by a crypto investor whose details were in a breached database. 

France, in particular, has been under an intense threat level due to the compromise of the tax agency records. 

So far in 2026, the annual crypto linked to these violent attacks has surged to $107M. Although the figures have dropped by half in the past two years from $360M to $180M in 2025, it remains to be seen if 2026 posts a similar trend. 

That said, the number of successful wrench attacks that end in crypto losses has also declined, according to Chainalysis. In 2026 alone, the success rate has dropped to 26% (only 12 stolen funds out of 46 attempts). 

Still, this does not downplay the physical and financial threat crypto investors have to deal with. From an on-chain exploits perspective, over $1.2B has been lost in 2026. Some of the attack vectors range from operational security lapses to social engineering. 

Overall, crypto investors must take extra precautions regarding their investments and physical security. If the threats persist, self-custody could be at risk, and many users may be forced to resort to crypto ETFs to mitigate some of the risks. 

Final Summary

• Crypto whale has lost $25.6M, adding to over $1.2B lost in exploits this year.
• Violent attacks have dropped by 26% in 2026 but now affect even non-crypto investors.