Hardware wallet users targeted as shipping data breaches expose home addresses

The security of crypto-assets often relies on cold storage, but these recent hacks underscore a critical failure in the supply chain. By accessing shipping logs, criminals have obtained the names and residential locations of individuals likely to hold significant digital wealth. This intelligence facilitates so-called wrench attacks, where perpetrators use physical force or kidnapping to coerce victims into revealing their private seed phrases.

Data from blockchain security firm CertiK indicates a 75% increase in these real-world robberies throughout 2025, with losses exceeding $40 million. Chainalysis reports similar trends, noting that gangs are increasingly coordinating home invasions to bypass digital security measures. Beyond physical threats, the leaked contact details serve as prime material for sophisticated phishing campaigns designed to siphon funds remotely.

Separately, vulnerabilities in the manufacturing process have proven just as damaging. Earlier this month, hackers exploited a 2021 coding flaw in Coinkite’s Coldcard wallets, allowing them to predict seed phrases generated offline. This breach resulted in the loss of $130 million, demonstrating that even air-gapped devices are not foolproof if the underlying architecture contains a latent weakness.