In the field of digital security, the term “$5 Wrench Attack” clearly indicates that even the most complex cryptographic systems can be compromised by simply spending $5. The name comes from a hypothetical situation in which an attacker manages to bypass a complex digital encryption simply by using a $5 wrench to extort the password from a user with threats and/or a physical attack. This highlights that the effectiveness of digital security measures also depends on the physical safety and psychological resilience of the individual, therefore human factors often represent the weakest link in the security chain. In the cryptocurrency field, what is stolen under threat is the seed or private key. In France, there have been many attacks of this type in the last year.

CLARIFICATIONS
Below I report general advice for storing seeds/private keys but also for the $5 Wrench Attack. You should however consider that hiding the seed does not protect you from a physical attack because the criminal is threatening you so he could force you to contact some of your family members to pass you the seed. The N1 rule is to have wallets with small amounts then pass those or use PIN that divide the wallet into multiple balances. However if you have not adopted good privacy and the attackers know that you have 20M...you cannot give them a wallet with only $500.

DEFENSE TECHNIQUES
First of all, it is essential for a user to adopt robust operational security (OPSEC) measures to avoid drawing attention to themselves or their sensitive information. This includes keeping a low profile, using secure communication methods, and avoiding predictable routines that could make them an easy target for coercion. Additionally, stress management and interrogation resistance training can be critical to ensuring a user does not succumb to physical threats. More broadly, the $5 Wrench attack serves as a reminder to organizations and individuals of the importance of holistic security approaches. This includes investing not only in robust digital security systems, but also in physical and psychological training for personnel who have access to sensitive information. No matter how secure a wallet’s encryption is, it can be useless if an attacker can simply threaten the wallet owner until they agree to transfer their Bitcoin.

GENERAL TIPS
-Privacy: Keep your BTC private and avoid sharing information about your investments publicly, which could expose you to digital threats (phishing) and physical attacks.

-Geographic separation: Store your seed phrases in secure locations, separate from your hardware wallets, inside or outside your home. This reduces the chance of an attacker getting your 12-24 recovery words. With a multisig vault setup, you may also want to geographically separate your hardware devices.

-Home Security: Improve physical security measures at home or wherever you store your seed phrase and hardware devices. This could include security cameras, alarm systems, better locks, or safes to deter potential thieves and attackers.

-Spread your capital across multiple wallets: some with small amounts to give to the attacker (both software and hardware wallets) if needed.

-Decoy wallet: With a singlesig setup (hardware device), create a secondary wallet with a smaller amount of BTC that you can transfer if forced, satisfying the attacker and keeping your main cold storage funds safe. This can be achieved by creating a “hidden wallet” with a passphrase (hidden wallet).

-Shamir’s Secret Sharing: Store fragments of the words in different locations. This makes it difficult for an attacker to recover all the pieces needed to access the funds.

-Multisig: Implement a multi-signature wallet where multiple private keys are needed to authorize access or move your BTC. The keys can also be located in different geographical locations. Using this strategy, even if an attacker gains access to one key, the BTC stored in a multisig vault remains protected since the attacker would need additional private keys.

-Multisig Shared Custody: Organize with trusted people to request access to your funds from multiple parties. This spreads the risk and makes it harder for an attacker to access your funds through coercion.

-Use Biometric Login or External Authentication Factor: Securing access to devices or wallets with biometric authentication (fingerprint or facial recognition) adds a layer of security.

-Use Hardware Wallet with PIN and “Bricking” Function: Some hardware wallets can be configured with specific PIN that cause the contents to be immediately deleted if entered incorrectly a certain number of times. In the event of a threat, this can protect the funds by eliminating access.

-Use a Time-locked Wallet: Set up a wallet that only allows access to funds after a certain amount of time has passed since the transaction began.

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