Crypto Holder Robbed of $6.7M in Physical Attack — Funds Already Laundered Through Tornado Cash!

On-chain analyst Specter has flagged a suspected physical attack on a Kraken and Coinbase user that resulted in the theft of $6.7 million in digital assets. The victim's Kraken account was drained of 1,554 ETH (approximately $3.3 million) and 10.5 BTC, while a separate Coinbase account lost 34.1 cbBTC worth around $2.6 million.

Specter reports the attackers moved quickly to cover their tracks, depositing $5.3 million of the stolen funds into Tornado Cash — the privacy mixer that has become the go-to laundering route for high-value crypto theft. The speed of the laundering suggests a coordinated operation with pre-planned exit infrastructure.

The incident is a stark reminder that on-chain security is only one layer of the threat surface. Physical coercion attacks — sometimes called '$5 wrench attacks' — are an escalating risk for publicly identifiable holders of significant crypto…