Off-chain Threats: Real-world Risks Faced by Encryption Asset Holders

In the field of blockchain, we often focus on on-chain security issues, but recent events indicate that real-world threats cannot be ignored either. This article will delve into offline attacks targeting encryption asset holders, review typical cases, analyze crime patterns, and provide practical prevention advice.

The Nature of a Pump and Dump Attack

"Wrench attack" originates from a webcomic depicting a scene where an attacker coerces a victim into surrendering their password using simple tools. This term vividly summarizes an attack method that does not rely on technical means, but rather uses real-world threats or violence to obtain encryption assets.

Recent Case Review

Since the beginning of this year, multiple kidnapping cases targeting individuals in the encryption field have attracted attention:

• French police rescued the father of a cryptocurrency tycoon, whose kidnappers had severed his finger and demanded a large ransom.
• The co-founder of a certain hardware wallet company and his wife were attacked by armed assailants, who also used extreme methods such as finger amputations.
• An Italian investor was imprisoned in New York for three weeks, severely tortured and forced to hand over his wallet private key.
• The daughter and grandson of the founder of a French encryption company were almost kidnapped on the street.

These cases reveal that, compared to complex on-chain attacks, direct personal threats are often easier to carry out. It is worth noting that some attackers are relatively young and possess basic encryption knowledge.

In addition to violent incidents, there is also "non-violent coercion" through the mastery of private information for extortion. However, due to victims' concerns about retaliation or identity exposure, many cases may go unreported, making the actual situation even more severe.

Crime Chain Analysis

According to research by Cambridge University and multiple cases, we can summarize the typical process of a wrench attack:

1. Information Locking: Attackers assess the scale of target assets through on-chain data, social media, and other channels.

2. Reality positioning: Obtaining the real identity and whereabouts of the target, methods include social engineering, public data queries, etc.

3. Violent Threats: After controlling the target, use various means to force them to hand over their private key or make a transfer.

4. Fund Transfer: Quickly transfer acquired assets through methods such as mixing, OTC, etc., for money laundering or cashing out.

Some attackers possess knowledge of blockchain and can adopt complex methods to evade tracking.

Prevention Suggestions

In the face of wrench attacks, traditional multi-signature wallets and other technical means may actually exacerbate the risks. A more practical strategy is:

• Prepare "induction wallet": store a small amount of assets for emergencies.
• Family safety awareness: Family members need to understand basic response measures and set up a safety code.
• Avoid exposing your identity: manage social media information carefully, do not flaunt wealth or disclose asset status.

The most effective defense is to make potential attackers believe that you are not a worthwhile target.

Conclusion

With the development of the encryption industry, KYC and AML systems play an important role in preventing and controlling illegal fund flows. However, excessive collection of user information may bring new security risks. It is recommended that platforms adopt a dynamic risk identification system to reduce unnecessary information collection while also integrating professional anti-money laundering tracking services. In addition, regular security assessments and red team testing are also effective means to enhance overall security.