Wrench Attack: New Risks in Encryption Assets

With the development of blockchain technology, we often discuss security issues such as on-chain attacks and smart contract vulnerabilities, but recent cases indicate that off-chain risks are becoming an increasingly serious threat.

Last year, a cryptocurrency billionaire was involved in a thrilling attempted kidnapping. The attackers tracked the target's movements using GPS and forged documents, attempting to ambush and control them from behind as they ascended the stairs. Fortunately, the victim fought back desperately and managed to escape.

As the value of encryption assets continues to rise, violent attacks against holders are becoming increasingly frequent. This article will delve into the methods of these attacks, review typical cases, analyze the underlying criminal patterns, and provide practical prevention suggestions.

Definition of Wrench Attack

The concept of "wrench attack" originates from a web comic that depicts a scenario where an attacker does not use high-tech means, but instead resorts to simple threats of violence to obtain the victim's password. This method of attack bypasses complex technical defenses and directly targets human vulnerabilities.

Recent Case Review

Since the beginning of this year, kidnapping cases targeting holders of encryption assets have been frequent, with victims including core project members, opinion leaders, and ordinary users.

In early May, French police successfully rescued the father of an encryption tycoon. The kidnappers, demanding a huge ransom, even cruelly cut off the victim's fingers.

In January, a co-founder of a hardware wallet company was attacked at home by armed assailants, who also employed extreme violence.

In New York, an Italian encryption investor was imprisoned for three weeks, suffering various tortures, with the aim of forcing him to hand over his wallet private key.

These cases reveal a disturbing trend: compared to complex on-chain attacks, direct violent threats seem to be more effective and have a lower barrier to entry. It is noteworthy that many attackers are quite young, typically between the ages of 16 and 23, but already possess basic knowledge of encryption.

In addition to violent incidents, there are also cases of "non-violent coercion," such as attackers using private information they have to make threats. Although such actions do not result in direct physical harm, they still constitute a serious personal threat.

It is important to emphasize that the publicly disclosed cases may only be the tip of the iceberg. Many victims choose to remain silent for various reasons, making it difficult to accurately assess the true scale of off-chain attacks.

Crime Chain Analysis

According to research from Cambridge University, wrench attacks typically involve several key stages:

1. Information Locking: Attackers initially assess the target's asset scale by analyzing on-chain data, social media information, etc.

2. Real-world positioning and contact: After identifying the target identity, the attacker will attempt to obtain their real-life information, such as residence, daily activities, etc.

3. Violent threats and extortion: Once the target is controlled, attackers often use violent means to force them to hand over their private keys or to transfer assets.

4. Money laundering and fund transfer: After gaining control of the assets, the attacker will quickly transfer and hide the ill-gotten gains, often involving methods such as mixing coins and OTC trading.

Countermeasures

In the face of such attacks, traditional methods like multi-signature or decentralized storage may not be practical enough. A more effective strategy is:

• Set up a decoy wallet: Prepare an account that looks like the main wallet but only holds a small amount of assets for emergencies.

• Family safety management: Formulate emergency plans with family members, set up safety codes, and strengthen home safety measures.

• Avoid identity exposure: Be cautious in managing social media information, and avoid revealing the fact of holding encryption assets in real life.

Conclusion

With the development of the encryption industry, KYC and AML systems play an important role in preventing illegal capital flows. However, these measures also bring new data security challenges. It is recommended that trading platforms introduce a dynamic risk identification system based on traditional KYC to reduce unnecessary information collection. At the same time, consideration can be given to integrating professional anti-money laundering tracking platforms to enhance risk control capabilities. In addition, regular security assessments and penetration tests are also essential, as they can help the platform comprehensively check for potential data leakage risks.