Offline Risks in an Online World: Inside the $5 Wrench Attack

Merkle Science
July 14, 2025

A $5 wrench attack refers to a real-world threat: instead of hacking crypto wallets, criminals simply use physical force or intimidation to steal private keys. As crypto adoption grows, so does this troubling shift from online exploits to offline crime. 

This article examines how and why $5 wrench attacks occur. We’ll analyze how victims are profiled, how criminals gain access—whether through brute force or social engineering—what group sizes are typical, how often violence is actually used, and more. By understanding the tactics behind these crimes, crypto holders can take smarter precautions against an increasingly physical form of theft.

Insights into $5 Wrench Attacks

Between January 2024 and July 2025, we analyzed over 60 reported incidents of physical crypto-related attacks, using public reports and entries from Jameson Lopp’s Physical Bitcoin Attack database. These so-called $5 wrench attacks get their name from a 2013 xkcd comic that satirically pointed out a flaw in ultra-secure crypto storage: no matter how strong your encryption, a $5 wrench and physical coercion can force someone to reveal their private keys.

Our findings offer practical insights for anyone looking to safeguard their crypto assets in the real world.

Victim Profiling

Despite the name, $5 wrench attacks are rarely random acts of violence. Victims are selected deliberately. Perpetrators typically know their targets hold cryptocurrency and have custody over it—either through hardware wallets or private keys. More critically, attackers have made a calculated decision that the potential reward outweighs the risk. While many assume that only high-net-worth individuals (i.e., "whales") would be targeted, this isn't always the case.

Our research shows that the value involved in these attacks varies widely—from as low as $5,000 to a high of $50,000,000. This disparity suggests two key insights: First, attackers may sometimes overestimate how much crypto a victim actually holds. In one wrench attack, the attackers let the victim go after seeing that their wallet balance was far less than they had assumed. Second, the threshold for becoming a target may be far lower than people expect, especially in regions with lower costs of living. For example, an attack that nets $10,000 may not seem worthwhile in Palo Alto but could be highly lucrative in an emerging market.

This underscores the importance of strong operational security. In one March 2025 case, a streamer was pistol-whipped and dragged out of bed by multiple assailants—yet managed to fight them off. What triggered the attack? Days earlier, she had posted a screenshot showing over $20 million in Bitcoin and Ethereum. The takeaway is clear: individuals should avoid sharing any details about their crypto holdings, regardless of size. What may seem trivial to you could represent a life-changing sum to someone else, and be more than enough to justify making you a target.

Initial Access

Many of the attacks we analyzed followed the classic $5 wrench playbook: direct confrontations where criminals used the threat of violence to extract private keys. But 28 out of 62 reviewed instances, or 45%, began with some form of social engineering. In these cases, attackers hid their true identities to lure victims into vulnerable settings, often private locations where resistance would be more dangerous.

These setups followed familiar patterns:

  • Impersonating law enforcement or government officials, such as in a May 2025 case where attackers posed as military personnel to abduct the founder of Mitroplus Labs.
  • Posing as peers in a crypto trade, like a February 2025 incident in South Korea where the victim was lured to a hotel and fatally stabbed.
  • Building trust through casual social networking, especially at conferences. In one November 2024 case in Las Vegas, a conference attendee was drugged and robbed by two women he met during the event. These environments, designed to foster collaboration and openness, often cause people to drop their guard. 

Crypto holders must approach all crypto-related interactions with caution. Never assume good intentions, especially if you’re asked to change locations, share personal information, or give access to your assets.

Criminal Profile

Contrary to popular belief, $5 wrench attacks are rarely solo efforts. Of the incidents we studied, only 8 involved a single perpetrator. In contrast, 84% included multiple suspects.

This makes practical sense: it’s easier to subdue and intimidate a target with superior numbers. Larger groups also allow for specialized roles—some members may handle social engineering, others manage logistics like transportation, and others may facilitate laundering the stolen funds.

The involvement of multiple actors highlights the organized nature of these crimes and further emphasizes the need for preventative measures, vigilance, and compartmentalization in crypto-related activity.

Physical violence 

Our research found that in most cases, it wasn’t just the threat of violence—actual violence was used in 67% of incidents. In some attacks, force appeared to be part of the plan from the outset, with victims tied up, restrained, or injured to prevent resistance. In others, violence escalated in the moment, triggered by a victim’s refusal to comply or attempt to fight back.

Regardless of the circumstances, one thing is clear: $5 wrench attacks are not mere scare tactics. The perpetrators are prepared—and often willing—to use real, sometimes severe, violence to gain access to crypto. Unlike digital hacks, where there is sometimes room for negotiation (such as partial returns in exchange for a “reward”), physical attackers typically walk away with everything, or nothing.

So what should you do if confronted? While there is currently no official government guidance specific to $5 wrench attacks, compliance may be the safest course of action at the moment. Afterward, victims should immediately seek medical attention and report the incident to law enforcement.

Ultimately, long-term prevention remains far more effective than reaction. Experts and agencies alike advise minimizing public exposure of crypto holdings and investing in layered security, such as surveillance systems, reinforced entry points, panic buttons, or even safe rooms for high-risk individuals. For those with significant crypto holdings, compartmentalization and multi-signature custody solutions may further reduce the risk of total compromise.

Wrench Attacks Are Universal 

Our analysis shows that the top three regions for wrench attacks are Asia (33 cases), Europe (19 cases), and North America (13 cases). At the country level, France (11 incidents), Thailand (6), and the United States (6) reported the highest number of cases from our sample. 

These numbers reflect both high crypto adoption and potential vulnerabilities in physical security. But wrench attacks aren’t limited to these hotspots—they can happen anywhere. Law enforcement agencies must be prepared. Tools like Tracker can trace on-chain movements tied to physical crimes. Contact Merkle Science for a free demo.