Off-chain Risks: The "Shadows" of the Blockchain World

In the field of Blockchain, we often focus on technical threats such as smart contract vulnerabilities and on-chain attacks. However, a series of recent events remind us that off-chain personal safety risks are becoming a new challenge that cannot be ignored.

Last year, a cryptocurrency tycoon was involved in a harrowing attempted kidnapping case. The attackers tracked the target using GPS positioning, forged documents, and other means, attempting to forcibly control them as they returned home. Fortunately, the victim's desperate resistance allowed them to escape. This incident reveals that the real threats against holders of crypto assets are increasing.

As the value of crypto assets continues to rise, violent incidents aimed at acquiring private keys or assets have become increasingly frequent. This article will delve into the criminal method known as "wrench attack," review typical cases, and propose practical prevention suggestions.

The Nature of a Wrench Attack

The term "wrench attack" comes from an online comic, suggesting that even with the strongest technical defenses, an attacker may force a victim to hand over their password through simple brute force methods. This type of attack does not rely on technical vulnerabilities but directly threatens the personal safety of the victim.

Case Review

Since the beginning of this year, multiple kidnapping cases targeting cryptocurrency users have drawn attention:

• The father of a cryptocurrency tycoon was kidnapped, and the criminals cruelly cut off his fingers to pressure the family to pay a ransom.

• The founder of a hardware wallet company and his wife were attacked at home and suffered physical injuries.

• An Italian investor was imprisoned for three weeks, subjected to torture such as chainsaw and electric shocks, and forced to hand over his wallet private key.

• The daughter and grandson of a founder of a cryptocurrency exchange platform were nearly kidnapped on the street.

These cases indicate that, compared to complex on-chain attacks, off-chain violent threats are more direct and efficient. It is worth noting that many suspects are relatively young and possess basic knowledge of cryptocurrency.

In addition to violent incidents, there are also some cases of "non-violent coercion," such as attackers threatening victims by obtaining their private information. Although no direct harm has been caused, it has already touched the boundary of personal safety.

It is important to emphasize that the disclosed cases may only be the tip of the iceberg. Many victims choose to remain silent due to concerns about retaliation or identity exposure, making it difficult to assess the true scale of off-chain attacks.

Crime Chain Analysis

According to research from the University of Cambridge and several typical cases, the criminal chain of wrench attacks usually includes the following stages:

1. Information Locking: Attackers collect target information from on-chain transactions, social media, and other channels to assess asset scale.

2. Reality positioning: Obtain the target's real identity and whereabouts information through means such as social engineering and reverse lookup of public data.

3. Violent threats: After controlling the target, use physical harm, threats to relatives, and other means to force the surrender of private keys or assets.

4. Fund Transfer: After obtaining the private key, quickly transfer assets and use methods such as mixers to conceal the source of funds.

Some attackers have a background in Blockchain technology and will take complex on-chain operations to evade tracking.

Measures

In the face of wrench attacks, traditional multi-signature wallets and other technical means are not practical. A more prudent strategy is "give what you can, and ensure losses are controllable":.

• Set up a wallet for emergencies: Prepare an account with only a small amount of assets for emergencies.

• Family Safety Management: Develop emergency plans for the family and set safety code words.

• Avoid identity exposure: Manage social media information carefully and avoid disclosing asset status in real life.

The most effective protection is to not make yourself an obvious target for attack.

Conclusion

With the development of the cryptocurrency industry, KYC and AML systems play an important role in preventing illegal funds flow. However, there are still challenges in the execution process, especially regarding data security and user privacy. It is recommended to introduce a dynamic risk identification system to reduce unnecessary information collection, while strengthening the platform's own data security capability construction and comprehensively assessing the exposure risks of sensitive data.