tl;dr
Festo Ivaibi, founder of Mitroplus Labs in Uganda, was abducted at gunpoint on May 17, 2025, by attackers posing as Uganda People's Defence Forces members. They forced him to transfer $500,000 in cryptocurrency and sell part of the Afro Token meme coin under duress. This incident is part of a rising...
On May 17, 2025, Festo Ivaibi, founder of Mitroplus Labs and the Afro Token Project in Uganda, was abducted at gunpoint by attackers impersonating Uganda People's Defence Forces operatives. He was coerced into transferring $500,000 in cryptocurrency and forced to sell part of the Afro Token meme coin under duress. This incident highlights a disturbing rise in so-called "wrench attacks," where crypto holders face physical threats to gain unauthorized access to their digital assets.
At least 48 similar incidents have been reported, involving informants posing as crypto traders, rogue law enforcement officers, and foreign nationals, often dismissed due to criminal ring influence. The value of Afro Token dropped approximately 16.7% following the attack, falling from a market cap of over $7.3 million in December 2024 to about $1.6 million currently.
Security experts recommend adopting multi-factor authentication and closely monitoring unusual transaction patterns or access from new devices to mitigate forced transfers under duress. Michael Pearl, VP of Strategy at CyVers, emphasizes that these measures can help alert owners and temporarily freeze assets to prevent theft during such attacks.
The surge in wrench attacks corresponds with rising income disparities and the skyrocketing value of cryptocurrencies. Compounding these risks, government demands for greater transparency and identity disclosure may inadvertently expose users to targeted threats. Harry Halpin, CEO of the decentralized VPN service Nym, advocates for the use of VPNs and other privacy-enhancing tools to protect against both physical and digital attacks.
This troubling trend underscores the evolving risks faced by cryptocurrency users worldwide, emphasizing the need for robust security protocols and awareness to safeguard digital wealth from increasingly brazen and violent tactics.