I recently noticed a very alarming statistic regarding physical coercion attacks in the cryptocurrency space. The numbers are truly shocking—an increase of 75% in just the past year. We’re talking about losses exceeding $40 million worldwide, and this is only what has been officially reported.

According to a study by CertiK, 72 confirmed attacks using this method have been documented. What’s concerning is that these are not hacks that require high technical expertise. Instead, they are simply the use of force or threats to compel victims to reveal their private keys. Criminals choose this approach because it is highly effective and easy to carry out.

What surprises me is that Europe is seeing a disproportionate wave of these attacks. France alone recorded 19 incidents, which is double what was reported in the United States. Germany, the United Kingdom, and Spain are also experiencing high rates. There are many factors behind this—densely populated areas make it easier for criminals to identify targets, and some cryptocurrency owners in Europe do not take sufficient security precautions.

The difference between this kind of attack and ordinary hacks is very clear. Traditional hackers require advanced technical skills and face digital obstacles. Social engineering operations depend on psychological manipulation. But physical coercion attacks go beyond all of this—their success rate is very high, and criminal investigations are extremely difficult because they leave physical evidence but few digital traces.

Honestly, this reflects a deeper problem with the current security model for cryptocurrencies. We focus too much on digital protection—cold wallets, multi-signature schemes, and strong passwords—but we ignore human vulnerability and physical threats. You can’t protect a person under threat of a weapon with a cold wallet.

Experts suggest several preventative steps. First, maintain complete privacy regarding your cryptocurrency holdings—don’t discuss values publicly, and use pseudonyms. Second, improve physical security—surveillance cameras, and changing your daily routine to avoid predictability. Third, consider distributed storage options or secure deposit boxes for recovery phrases.

There is also an important point about backup wallets. Some people recommend creating wallets with limited amounts that you can hand over under coercion. This gives you an option in a true emergency.

From the law-enforcement perspective, things are complicated. Physical crimes happen within national jurisdictions, but money transfers cross borders. Some European countries have set up specialized units that combine digital forensics with traditional investigations. Europol has recently launched a task force for cryptocurrency-related crimes, and this is a positive step.

What worries me more is the psychological impact on cryptocurrency adoption. When people hear about these attacks and losses exceeding $40 million, they develop a negative perception of overall security. Institutional investors hesitate, and individuals may revert to the traditional financial system, which seems safer.

In the end, the industry needs an integrated security approach that addresses both digital and physical threats together. Education and awareness are extremely important. We must teach people that security is not an option but a necessity, and that protection requires comprehensive thinking across every aspect of your life.