Ask Onix
Stolen crypto: A digital nightmare with no recourse
Helen and Richard, a UK-based couple, lost £250,000 in cryptocurrency after hackers breached their cloud storage. Despite tracking the stolen funds on the blockchain, they remain helpless to recover them.
The theft
For seven years, the couple had steadily accumulated Cardano, a digital currency they believed held long-term potential. They stored their wallet access details in a cloud account, unaware it had been compromised.
In February 2024, attackers executed a small test transfer before draining their entire holdings in minutes. The funds were swiftly moved across multiple wallets, leaving the couple to watch in frustration as their savings vanished.
"It's like watching a burglar carry off your life's savings across an unbridgeable gap," Helen said. "You can see it, but you can't reach it."
A growing epidemic
A 2024 Financial Conduct Authority (FCA) survey estimated 12% of UK adults-roughly 7 million people-own crypto assets. Globally, that figure exceeds 560 million. As adoption rises, so do thefts.
Chainalysis, a blockchain analytics firm, reported over $3.4 billion in crypto thefts in 2025, matching the scale of previous years. While most losses stem from large-scale hacks of exchanges-like North Korea's $1.5 billion raid on Bybit-attacks on individuals are surging.
In 2025 alone, 80,000 personal crypto thefts were recorded, double the 2022 total. These incidents accounted for $713 million in losses, though Chainalysis warns the true figure may be higher due to underreporting.
No safety net
Unlike traditional finance, crypto offers no fraud protections. The FCA cautions that UK investors face "high risk" with little chance of compensation. Helen and Richard's case underscores this vulnerability-they've traced the thieves' wallet addresses but lack legal avenues to reclaim their funds.
Their only recourse? Saving enough to hire private investigators, though success is far from guaranteed.
"It leaves you feeling utterly helpless," Helen said. "But I won't stop trying."
Violence enters the equation
Criminals are increasingly resorting to physical coercion. Dubbed "wrench attacks," these incidents involve threats or violence to force victims to transfer crypto. In 2025:
- A UK carjacking saw masked assailants extract £1.5 million in crypto from a passenger.
- In Spain, a man was shot and later found dead after refusing to surrender his wallet keys.
- Ledger co-founder David Balland had a finger severed during a kidnapping in France.
Phil Ariss of TRM Labs noted that traditional criminals are pivoting to crypto, drawn by its liquidity and anonymity. "Whether targeting a Rolex or a wallet, the goal is the same: steal and launder," he said.
Data breaches fuel the fire
Hackers exploit stolen corporate databases to identify high-value targets. Matthew Jones, founder of crypto security firm Haven, highlighted a breach at luxury conglomerate Kering (owner of Gucci and Balenciaga) as a prime example.
A hacker told the BBC he purchased Kering's leaked customer data for $300,000, cross-referencing it with other breaches to scam Coinbase users out of $1.5 million. "I'm just following the money," he claimed, adding that he'd tripled his investment within months.
The self-custody dilemma
Many crypto holders embrace "self-custody," storing assets in personal wallets rather than exchanges. While this avoids platform risks, it eliminates fraud protections. If funds are stolen, victims have no entity to appeal to.
Jones, who lost crypto himself, developed a wallet with biometric locks and geofencing to thwart unauthorized transfers. Yet he acknowledges the trade-offs: "You're your own bank-with all the freedom and none of the safeguards."
For Helen and Richard, the stakes were personal. Much of their stolen Cardano came from the sale of Richard's late mother's home. The loss forced them to sell possessions and briefly left them homeless.
"My mother's life's work-gone," Richard said. "We're not giving up. If we recover the money, we'll invest again."
An unregulated frontier
The FCA's warning is blunt: crypto is "high-risk," and investors should assume total loss. With no regulatory oversight, victims like Helen and Richard face a brutal reality-digital assets may be visible, but they're often irretrievable.
