Federal prosecutors have indicted three men from Tennessee in connection with a series of violent attacks aimed at stealing cryptocurrency from victims across California. The suspects allegedly forced victims to reveal their crypto seed phrases—critical recovery keys that allow full access to digital wallets—by posing as delivery drivers and threatening physical harm. This scheme resulted in the theft of at least $6.5 million in cryptocurrency.
The attacks occurred last year within the Los Angeles and San Francisco Bay areas, targeting at least four individuals. One victim was compelled to transfer $6.5 million in digital assets to a crypto wallet controlled by the group, representing the vast majority of the stolen funds.
Authorities arrested Elijah Armstrong, Nino Chindavanh, and Jayden Rucker in December. They face multiple charges, including conspiracy to commit robbery and kidnapping, attempted robbery, and attempted kidnapping. Armstrong and Rucker are due to appear in court soon, with Chindavanh’s hearing scheduled for later this month.
The Justice Department described the operation as both brazen and dangerous, highlighting the increasingly violent tactics criminals use to exploit the vulnerabilities in protecting cryptocurrency. These physical “wrench attacks,” where victims are coerced through violence or threats into surrendering control of their digital assets, are on the rise. Experts attribute the surge partly to the easy availability of personal data online and the public accessibility of transaction information on blockchain networks.
This public visibility makes cryptocurrency holders appealing targets despite the pseudonymous nature of their wallets, as law enforcement grapples with securing assets that operate at the intersection of digital privacy and real-world risk. Similar criminal networks have been dismantled overseas; for example, French authorities recently charged dozens in connection with comparable attacks.