Cryptocurrency Wrench Attacks: What They Are & How to Protect Yourself
In the world of cybersecurity and cryptocurrency, the term “wrench attack” might sound odd — even humorous — but it refers to a very serious threat. Technically called a $5 Wrench Attack, this form of attack targets not your digital wallet but your physical safety.
🛠️ What is a Wrench Attack?
A wrench attack refers to a situation where someone is physically threatened — typically with a wrench, or any weapon — and forced to hand over their cryptocurrency wallet password or recovery phrase.
The term comes from a well-known internet comic that mocks the idea of elaborate cryptographic security by pointing out that an attacker could just say:
“I’ll hit you with this $5 wrench until you tell me your password.”
Unlike hacking or phishing, this is not a technical attack, but rather a brute-force attack on the person, not the computer.
⚠️ Real-World Examples
Wrench attacks are not theoretical. As cryptocurrency becomes more valuable and accessible, criminals are increasingly targeting known holders of crypto assets:
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In the UK, a man was kidnapped and beaten until he transferred Bitcoin to his attacker’s wallet.
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In the Netherlands, masked robbers tied up a crypto trader and tortured him with a drill.
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In Hong Kong and Lagos, users have reported being lured to meetings and robbed at knifepoint for their wallets or seed phrases.
🎯 Why Are Crypto Holders at Risk?
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Crypto is untraceable (in some cases), making it attractive to thieves.
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Funds can be transferred instantly and irreversibly.
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Some users store large amounts of value on their phones or laptops without multi-layered protection.
🔐 How to Protect Yourself from a Wrench Attack
1. Use Multi-Signature Wallets
A multisig wallet requires multiple keys to authorize a transaction. Even under threat, you alone wouldn’t be able to transfer the funds.
2. Decoy Wallets
Keep a small amount of crypto in a visible, easy-to-access wallet. If attacked, you can give up the decoy while the real funds remain secure.
3. Social OpSec (Operational Security)
Never brag online about how much crypto you own. Avoid flexing large transactions or balances on Twitter, Telegram, or forums.
4. Split Up Seed Phrases
Break your recovery phrase into parts and store them in different physical locations. Some use metal plates hidden in secure locations.
5. Emergency Lockdown Protocols
Some advanced wallets have kill switches or delayed withdrawal systems. They can lock access or notify trusted contacts if a transaction is forced.
6. Cold Storage
Keep the bulk of your crypto offline, in a hardware wallet, safely stored in a location unknown to others — ideally in a secure vault.
7. Geographic and Personal Safety
Use a PO Box instead of your home address, avoid public meetups for crypto trades, and consider security systems if your holdings are significant.
🧠 Final Thoughts
Wrench attacks expose the one flaw even the best encryption can’t fix — human vulnerability. The irony is that as technology advances to make digital currencies more secure, attackers may return to the oldest method in the book: violence.
Crypto security must go beyond software and into real-world personal safety planning. If you hold large amounts of digital currency, treat it like owning a treasure — discreetly, securely, and with strong protections in place.
Last week, we took a look at a few examples of wrench attacks against cryptocurrency holders. These are attacks that use violence, the threat of violence, or extortion to extract cryptocurrency from the holder.
Now that we have shown you what’s at stake, we will dig into this type of attack at a deeper level and explain some of the aspects that make them appealing to criminals. Next week, we will take a look at some of the security precautions that cryptocurrency holders can take.
What’s the deal with wrench attacks against crypto-holders?
We documented a few gruesome attacks and provided a list of many more in our last newsletter. One reasonable response might be, “What’s so special about wealthy crypto-holders getting kidnapped? Wealthy people in traditional financial systems get kidnapped as well.”
While there is truth to this, there are some special features about cryptocurrencies that make these attacks more appealing in contrast to holders of traditional financial instruments. Let’s go through them.
Cryptocurrency transactions are irreversible
From the criminal’s perspective, one of the appeals of targeting crypto-holders is that cryptocurrency transactions are irreversible. Code is law, and if the money gets sent then there is no way to get it back unless the recipient decides to transfer it back. This means that if you manage to get the crypto sent to an account under your control, it’s yours.
In contrast, traditional banking has things like chargebacks or clawbacks. Even if you get your victim to send you money from the bank, they might be able to reverse the transaction and claim it back. You could go to all that effort, putting yourself at great risk of imprisonment, and then have the money sucked back out of your account when you thought you were home free. This aspect makes targeting crypto-holders more appealing than those with money in traditional financial institutions.
two wrenches on a black background
It’s easier to disappear with crypto
If you force someone to make a bank transaction against their will, there’s a very clear record of where it goes, even if the money ends up in an offshore account. It’s possible to set up a complicated network of international accounts to escape the authorities, but this is hard to do, and probably out of reach for most normal people. There is also the risk of the money getting frozen at some stage of the journey, so you might not end up getting the money.
In contrast, cryptocurrency allows an attacker to quickly exchange the money to a private coin like Monero and essentially become untraceable. There are also cryptocurrency tumblers, which allow criminals to mix in tainted coins with legitimate ones, making it much harder to trace stolen funds across the network.
Bank policy can protect victims
If someone threatens you with a wrench for your cryptocurrency, all you have to do is make the transfer or give away the key. If someone threatens you with a wrench for your money stored in a traditional financial institution, the bank may have a series of checks that can get in the way, especially when significant or unusual transfers are taking place. Attackers may be reluctant to go through the legal risk of a wrench attack if there is the possibility that a bank may put a stop to the transaction after a victim initiates it.
Legal gray area
Crypto-holders often operate in a legal gray area. The regulation is complex, and some may opt out of declaring their crypto on their taxes. If a crypto-holder hasn’t declared their crypto on their taxes and they then suffer a wrench attack, they may be less likely to report it because they don’t want to get in additional trouble from the tax authorities. From the criminal’s perspective, this means that targeting a crypto-holder may make it easier to get away with the crime than if they targeted someone with their money in the traditional financial system.
The authorities may not take it seriously
According to Investigating Wrench Attacks: Physical Attacks Targeting Cryptocurrency Users, many victims of wrench attacks fear that the authorities won’t take the crime seriously because cryptocurrencies are seen as “magic Internet money”. This makes them reluctant to report the crimes. On top of this, many police forces simply don’t have the skills and technical knowledge to investigate cryptocurrency-related crimes.
The reluctance to report and the lack of skills within the police can mean that it is more likely for an attacker to get away with a crime when targeting a cryptocurrency holder instead of someone who keeps their money in a bank.
The authorities may not take it seriously
As we have discussed, there are multiple aspects of the crypto-industry that can make crypto-holders more appealing targets than those who keep their money in traditional banking institutions. From irreversible transactions to a lack of pesky bank policies that protect victims, targeting crypto-holders has its advantages.