Why 'Wrench Attacks' on Wealthy Crypto Holders Are on the Rise
The cryptocurrency world has always been associated with innovation and risk-taking, but a disturbing trend is emerging: wealthy individuals who hold large amounts of digital assets are becoming targets for violence, known as "wrench attacks". The term originated from an online comic that mocked how easily high-tech security can be bypassed by hitting someone with a wrench until they give up passwords. This phenomenon is on the rise, and it's not just a matter of hackers trying to crack codes; it's about people being held hostage for their bitcoin.
"Criminal groups already comfortable with using violence to achieve their goals were always likely to migrate to crypto," said Phil Ariss, a crypto tracing expert at TRM Labs. The rise of wrench attacks can be attributed to cryptocurrency's move into mainstream finance, which has brought it closer to the traditional financial system.
Cryptocurrencies like bitcoin offer traders full control over their funds without the need for a bank or permission from a government to buy, sell or hold it. This freedom comes with a price: if funds are lost or stolen, there can be no way to get them back. The self-reliance ethos of crypto is reflected in the popular motto "not your keys, not your coins". Transactions on the blockchain are permanent and irreversible, making it difficult for authorities to track down stolen assets.
One notable case is an Italian man who claimed he was kidnapped and tortured for weeks inside an upscale Manhattan townhouse by captors seeking his bitcoin. The alleged attempted robbery highlights a dark corner of the cryptocurrency world: the threat of violence by thieves seeking digital assets. While the specifics of this case are still under investigation, it's clear that wealthy crypto holders can be prime targets.
Stealing cryptocurrency is not new, but traditional hacking methods have been largely replaced by more violent tactics. North Korean state hackers alone are believed to have stolen billions of dollars' worth of crypto in recent years. In response to the threat of hacking, some holders of a large amount of crypto try and keep their private keys off the internet and stored in what are called "cold wallets". These wallets can defeat even the most sophisticated hackers, but they can't protect against thieves who force a victim to give up their password.
Experts suggest several ways to mitigate the threats of wrench attacks. One solution is using wallets that require multiple approvals before any transactions. Another common tactic among wealthy crypto holders is trying to stay anonymous online. Using nicknames and cartoon avatars in social media accounts is a common practice even among top executives at popular companies.
The case in New York, where two people have been charged, is the latest in a string of high-profile wrench attacks. Several similar incidents have taken place in France, including one where thieves cut off a crypto executive's finger to try and get him to reveal his password. As the cryptocurrency world continues to evolve, it's essential for wealthy holders to be aware of these threats and take necessary precautions to protect themselves.