The security discourse taking the crypto world by storm

Cryptocurrencies are known for their volatility and fluctuations, with the prices changing very often and recording significant variations, in many cases from one day to another. Those who are highly averse to risks don’t want to deal with these holdings, which is why crypto coins are not yet regarded as mainstream assets. Nonetheless, their reputation has improved over the last few years, with 2025 seeing an influx in the number of institutional investors who are willing to add cyber assets to their portfolios.

The ecosystem itself remains fairly challenging to navigate, though, especially by those who aren’t accustomed to the latest tech developments. Those who are interested in how to buy crypto use the resources provided by exchanges such as Binance, the largest and one of the most reputable platforms in the crypto world. Knowing what the latest metrics and predictions are, as well as what you can expect from cryptocurrencies in the near future, is crucial so that you can create a strategy that allows you to keep up with the shifts and changes occurring in the market.

However, in addition to ensuring your trading ventures are robust, you must also invest time and effort in the security of your assets. Since the environment is fully decentralized, but there’s a large amount of funds that float through it every day, it is a huge target for hackers who want to extract crypto coins.

Wrench attacks

Wrench attacks are scenarios in which threats and violence are used to force crypto holders to reveal their private keys, unlock their wallets, or share their seed phrases. The tactic bypasses cybersecurity measures and, according to analysts, is becoming a growing threat in the ecosystem. Kidnapping and large-scale theft are sometimes involved as well, showing that the lives and general well-being of investors can be under threat at times.

Individual crypto investors with high net worths are typically targeted, but the executives of crypto companies can be targeted as well. In fact, researchers who have studied the phenomenon say that everyone who becomes fairly prominent as an asset holder can become a target. Potential victims need to be aware of the dangers, but those who are at high risk of dealing with these individuals are often acquainted with the threat. Crypto owners are not the first demographic to deal with such a situation, as others, such as luxury resellers, gold brokers, and cash couriers, have had to face it for decades.

The attacks have ushered in the development of new solutions for wallets. The mechanisms are referred to as “panic wallets”, and their purpose is to react to duress triggers by wiping balances instantly, as well as by sending false decoys or calls for help via biometrics. However, many point out that while they sound good in theory, whether or not they actually work as intended relies on too much speculation about the attacker’s motivation, knowledge, and methods, making them unreliable depending on the case.

Why are wrench attacks on the rise?

The perceived anonymity and irreversibility of crypto transactions are one of the main reasons why these attacks are becoming more commonplace. Criminals think their actions can go unpunished since once the funds are transferred, they are challenging to trace and pretty much impossible to get back. The fact that wealth is much more visible nowadays, thanks to social media, has amplified the risk as well, since it makes it much easier for the criminals to figure out who they should target and even how to do it (in the case of the people who show their locations or discuss their daily schedules online).

Gathering information online can be done quite easily, especially in the case of those who post a lot. Details about your family members, your address, and your workplace can be found very easily, making it easy for attackers to identify and track you. It’s also important to recognize that wrench attacks are regarded as the natural evolution of criminal behavior, with the groups and individuals that are already used to committing illegal activities often seeing crypto as the most logical next destination.

The real situation

Although wrench attacks are relatively new, data has already been gathered so that investors have a better idea of how criminals operate and what they have in mind when conducting these attacks. One of the first things that analysts noticed is that the incidence of wrench attacks follows market cycles, being more common during the bull runs or intense OTC trading. During these times, large deals tend to move off exchanges.

About a quarter of the incidents include home invasions, while a whopping 23% result in kidnappings. About 60% of the known perpetrators are apprehended, and roughly two-thirds of the attacks are successful.

Preventative measures

However, just because you’re a crypto investor doesn’t mean that you’re at the mercy of these people. There are several ways to protect yourself. Maintaining privacy is the fundamental one and, arguably, the most important. Don’t disclose the full extent of your crypto holdings or any association that might exist between your wallet’s address and personal identity. Installing better home security systems can help you feel safer as well.

As for your wallet, look into multi-signature solutions. They operate by using several different approvals before any sort of transaction can be carried out. When it comes to privacy, you should talk to your family and friends as well, so that they don’t end up inadvertently disclosing your personal information online.

Custody questions

The question of who should have custody of crypto assets is becoming increasingly common, and while not long ago most investors would have found it inconceivable not to be the custodians themselves, data shows that things are changing in the crypto world. Even veteran owners are reevaluating the actual benefits of self-custody.

However, if enough people decide that holding their own assets is too dangerous, it could create systemic risks and increase centralization.

To sum up, while attacks have always been common in the crypto world, wrench attacks are different as they can jeopardize the physical safety of investors as well. Apart from keeping your portfolio and assets safe, you must also do what it takes to ensure your physical well-being as well.