The world of cryptocurrency has long been plagued by theft, but a new and disturbing trend is emerging: ‘wrench attacks’ on wealthy crypto holders. The term, popularized by an online comic, refers to the brutal practice of physically coercing individuals into revealing their private keys or passwords to access their digital assets.
A recent case in New York, where two people have been charged, has brought this dark corner of the crypto world into the spotlight. An Italian man was allegedly kidnapped and tortured for weeks inside an upscale Manhattan townhouse by captors seeking his bitcoin holdings. While details of the case are still emerging, it highlights a growing concern among crypto experts.
According to Phil Ariss of TRM Labs, a crypto tracing firm, wrench attacks are on the rise due in part to cryptocurrency’s increasing mainstream acceptance. ‘Criminal groups already comfortable with using violence to achieve their goals were always likely to migrate to crypto,’ Ariss noted in a recent blog post.
The nature of cryptocurrencies like bitcoin makes their holders attractive targets. The ability to control funds without the need for banks or government permission is a double-edged sword. While it offers unparalleled freedom, it also means that lost or stolen funds are often irretrievable. The mantra ‘not your keys, not your coins’ underscores the importance of securing private keys, but this very security can become a liability when faced with violent threats.
Transactions on the blockchain are permanent and can be executed with just a few clicks, making stolen crypto easy to transfer and difficult to recover. In response to hacking threats, many large crypto holders store their private keys in ‘cold wallets’ offline. However, these security measures are ineffective against wrench attacks, where victims are forced to reveal their passwords.
Experts recommend several strategies to mitigate these threats, including using wallets that require multiple approvals for transactions. Another common approach among crypto-wealthy individuals is attempting to maintain anonymity through the use of nicknames and cartoon avatars on social media platforms.
The New York case is not an isolated incident. Several high-profile wrench attacks have been reported in France, including one where thieves cut off a crypto executive’s finger. As cryptocurrency continues to grow in mainstream finance, the threat of such violent attacks is likely to persist, making robust security measures and awareness crucial for those holding significant digital assets.
