Casa CTO Warns Crypto Holders: ’Stop Flaunting Wealth’ Amid Rising Wrench Attacks

Security alert: Casa’s chief tech officer sounds the alarm on physical threats targeting crypto millionaires. The advice? Keep your Lambo in the garage—and your mouth shut about your portfolio.

Wrench attacks—where thieves force victims to hand over crypto at literal gunpoint—are surging as on-chain sleuths connect wallets to real-world identities. Casa’s team sees a 300% spike in security consultations since January.

Finance world cynicism bonus: Meanwhile, Wall Street banks still think ’cold storage’ refers to their vaults of gold bars.

What is a Wrench Attack?

Lopp illustrated the concept using a well-known XKCD comic: “You know, I’m a super nerdy guy, and I’ve got this really fancy encryption that’s keeping all of my data protected, and you’ll never get access to it.”

He added: “I just beat him with this wrench until he hands over the password and the decryption.”

The quote emphasizes a Core vulnerability in digital asset security: no matter how strong the encryption, the human behind it is often the weakest link. The human body is the “single point of failure,” Lopp said.

Scope and Underreporting

While wrench attacks are less common than other crypto threats like phishing or hacking, Lopp stressed they are on the rise. He referenced 230 known incidents, though a study by Cambridge researchers found 672 discussions of physical attacks on Bitcoin Talk forums alone. Notably, only 2 out of 11 victims interviewed in that study had reported their incidents to authorities.

“Oh, you’ve got some funny internet nerd money there. There’s nothing that we can do about this,” Lopp said, recounting law enforcement’s earlier response to such reports.

Global Trends and 2025 Outlook

Lopp highlighted a strong correlation between the frequency of wrench attacks and cryptocurrency bull markets, with incident spikes following the 2018 and 2021 surges.

2025 is on pace to see an all-time high, he warned, estimating more than one wrench attack per week globally.

The United States leads in total cases, but smaller nations like Iceland, Estonia, Madagascar, and the UAE (specifically Dubai) show higher per capita risk. 

Dubai has recorded nine incidents, mostly related to OTC (over-the-counter) trades, but Lopp commended local law enforcement for their swift response: “100% success rate in catching these criminals very quickly.”

How Attacks Are Carried Out

Lopp outlined both violent and nonviolent tactics used by attackers. Most cases involve home invasions, kidnappings, or direct assaults.

In New York City, one victim was reportedly tied to a chair and tortured for weeks over a business dispute, but escaped without losing funds. In Las Vegas, Lopp cited two recent cases:

A woman worker drugged a victim and stole $300,000

A crypto event organizer was kidnapped, taken to the desert, and forced to surrender $4 million

Other methods include phone theft and the use of substances like scopolamine, known for inducing compliance without resistance.

Lopp estimated that attackers succeed in two-thirds of the 230 documented cases, while only 60% of suspects are ultimately apprehended.

He added, “We’re sending a bad signal to the criminals here until we start putting up more of a fight.”

Though only 3% of these attacks result in murder, Lopp noted most perpetrators avoid lethal violence to prevent harsher charges.

Security Advice from Lopp

Lopp’s central message was clear: reduce exposure.

“Shut up. Stop flaunting your wealth.”

He advised against face-to-face OTC trades unless conducted in secure, public places. Financial details should only be shared with people one literally trusts with their life. Roughly 25% of attacks are home invasions, prompting Lopp to urge improved residential security and caution when answering doors.

“A dog is one of nature’s best security systems,” he added.

He also recommended using non-KYC decentralized exchanges and privacy-preserving swap services to reduce digital traceability.

For long-term protection, Lopp endorsed Casa’s distributed multi-signature security model, which adds friction to fund access, making it harder for criminals to force immediate transfers.

“Intentionally very difficult to spend those funds,” he said.

Additional tips included being aware of surroundings, identifying exit routes in any situation, and never ingesting unknown substances, especially at events or during social interactions.

Larger Security Landscape

Despite the alarming rise in wrench attacks, Lopp noted that social engineering and phishing remain the most common attack vectors in crypto. High-profile data breaches, such as those involving Coinbase, have enabled a wave of spear-phishing campaigns, often targeted based on leaked KYC details.

He added that taking self-custody and keeping keys offline can eliminate 95% of remote type hacking attacks.

Lopp concluded his talk by encouraging attendees to reach out to Casa for both digital and physical security consultations, underscoring the need for a holistic approach in protecting crypto assets.

Also Read: “People’s Currency” – Charlie Lee Opens Litecoin Summit 2025