Recent incidents known as '$5 wrench attacks'—physical assaults aimed at stealing cryptocurrency—are prompting investors to seek the protection of centralized custodians instead of self-custody options. High-profile cases, such as the kidnapping of Ledger's founder, have heightened concerns over personal safety, challenging the crypto adage of ‘not your keys, not your coins.’ Wealthy individuals are now increasingly entrusting their assets to regulated custodians, with firms like HashKey citing a noticeable rise in interest among high-net-worth individuals and family offices. Experts suggest that while cold wallets provide control, they also introduce a significant risk, and many investors are shifting towards solutions that reduce vulnerabilities, such as multiparty computation (MPC) wallets. As regulations surrounding cryptocurrency tighten, there is optimism that increased law enforcement will help deter wrench attacks. The evolution of the crypto industry highlights a shift towards institutional safety measures while individuals also invest in personal security services to protect their assets.

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