Crypto Crime Shock: Israeli Gang’s $600K Bitcoin Torture Scheme Exposed

Digital assets become dangerous prizes in brutal extortion plot

The Dark Side of Crypto Wealth

When digital fortunes turn into physical threats—that's the terrifying reality behind a sophisticated kidnapping ring operating in Israel. Criminals are now targeting Bitcoin holders directly, bypassing traditional bank security measures and going straight for the private keys.

Torture for Transactions

The scheme involved holding victims captive while forcing them to transfer their cryptocurrency holdings. With $600,000 in Bitcoin at stake, the perpetrators employed brutal methods to extract login credentials and wallet access—proving that in the wrong hands, crypto's privacy features can become a criminal's best friend.

Security Wake-Up Call

This case highlights the urgent need for better personal security protocols among digital asset holders. While regulators worry about market manipulation, actual investors face far more immediate dangers. Because nothing says 'financial innovation' like having your fingers broken for your seed phrase.

The line between digital wealth and physical safety just got terrifyingly thin.

Violent Crypto Robbery Shocks Israel

Israel experienced one of its most violent crypto-related crimes last month after three suspects followed a man home, bound him, and tortured him until he surrendered his Bitcoin, stablecoins, and crypto wallets. 

Murad Mahajna, a Tel Aviv resident and the main suspect, allegedly planned to rob a Herzliya resident after learning the victim owned Bitcoin. According to reports, on September 7, Mahajna and two other suspects waited at the entrance of the victim’s apartment. 

When the victim arrived, the three forced him inside. The charges state that once inside, they tied his hands behind his back with a cable and beat him. When the victim refused to open his digital wallets, one of the attackers allegedly stabbed him twice. 

At that moment, the victim surrendered his belongings. According to reports, the robbers stole a significant amount of cryptocurrency, totaling $547,260 in Bitcoin and about $42,248 in USDT.

They also took a Rolex watch valued at approximately $50,000, a Trezor crypto wallet, a laptop, about €5,000 in Euros, and several thousand shekels in cash.

Mahajna was arrested three days later.

Wrench Attacks Rise with Bitcoin Prices

With several incidents recorded, 2025 has become the worst year for cryptocurrency theft. 

A recent Chainalysis report revealed that by mid-2025, the amount of cryptocurrency stolen year-to-date was 17% higher than the total stolen during 2022, which was previously the worst year on record. Analysts project that if current rates persist, total stolen funds could top $4 billion by the end of the year.

The report noted a concerning trend: personal wallet compromises are now a growing source of theft. This indicates that attackers are increasingly focusing on individual users.

Data also suggests that “wrench attacks”—where physical violence or threats force crypto holders to surrender funds—correlate with Bitcoin’s price movements. The trend implies that attackers target individuals during periods of high asset value.

Although violent assaults of this nature are relatively uncommon, the fact that they involve physical harm, including severe injury, abduction, and death, significantly increases the human cost and severity of these incidents.