Crypto custodians are reporting a rise in interest for their services amid an increase in attacks on investors and blockchain industry professionals.
What are wrench attacks?
Wrench attacks are physical attempts to steal cryptocurrency from investors, which have become more frequent in recent years. The advancement of technology and growing interest in cryptocurrencies have contributed to the rise in such attacks.
Shift in preference towards institutional control
Due to concerns over personal safety, investors are starting to prefer institutional custodial services over self-custody. This observation has been supported by numerous examples where physical coercion was used to access crypto assets.
Solutions to mitigate attack risks
The market is introducing various storage models, such as multiparty computation, which decentralize control, thereby reducing the risk of attacks on individual investors. However, there remains the risk of employee misconduct in centralized institutions.
The increase in physical attacks on crypto investors is shifting perceptions of security, leading to heightened interest in custodial services. The adoption of new regulatory frameworks also contributes to enhanced security in the crypto space.
