As cryptocurrency ownership becomes increasingly mainstream, the risks facing holders are no longer confined to hacks and online exploits. Physical attacks designed to force victims into handing over crypto assets are on the rise, exposing a growing vulnerability at the human level of security. According to data from blockchain security firm CertiK, at least 72 so-called “wrench attacks” were recorded in 2025, marking a sharp increase from the previous year. Europe has emerged as a particular hotspot, with criminals increasingly using intimidation, assault, or extortion to extract funds directly from individuals. This is a broader shift in crypto-related crime, where speed and coercion are central, and where protective measures that introduce delay and friction can play a critical role in reducing risk.
SwissBorg, a European crypto investment app, is rolling out a new “Withdrawal Protection” feature aimed at safeguarding users from physical coercion and extortion. The update introduces a non-bypassable time-lock on crypto withdrawals. In practice, once a user activates Withdrawal Protection, any transfer of funds out of their SwissBorg account is subject to a mandatory waiting period. This means that even if a user is forced under duress to initiate a withdrawal, the assets cannot leave the account immediately – a measure designed to deter would-be attackers relying on fear and urgency.
Withdrawal Protection lets users choose a delay period from 1 to 90 days during which all outgoing crypto transactions are frozen. This delay applies to every external withdrawal once the feature is enabled, with no overrides or fast-tracks available. Not even SwissBorg’s support team can shorten the timer, according to the company, ensuring that the lock cannot be removed in the heat of a crisis. By removing the possibility of instant payouts, SwissBorg hopes to make itself a much harder target for “$5 wrench attacks” – a grim slang for crimes where thieves use physical violence to obtain crypto login access or keys on the spot.
Key aspects of Withdrawal Protection include:
Europe has emerged as a hotspot for such crimes, accounting for over 40% of reported incidents globally (with France recording the highest number of cases, even surpassing the U.S.). Industry experts warn that as crypto adoption grows, criminals are becoming more brazen in exploiting the human element of security, underscoring that security isn’t just digital, it’s a personal matter. In this context, measures that buy time during a forced withdrawal scenario can give victims a critical window to escape the situation or contact authorities, and can discourage attackers who expect quick payouts.
According to SwissBorg co-founder and CEO Cyrus Fazel, purely technical defenses are no longer enough in an age of mainstream crypto use. “Security must go beyond simply protecting accounts from hackers,” Fazel stated, noting that protecting users in real-world situations has become “equally important” as guarding against online threats. The Withdrawal Protection feature is designed to give users “time, control, and peace of mind” if they ever face coercion, effectively acting as a kill-switch against instant theft. Even if an attacker compels a user to unlock their device and initiate a transfer, the built-in delay means the funds won’t move until the pre-set time has passed, by which point the victim can seek help or the attacker may lose interest once they realize immediate loot is off the table.
The concept of time-delayed withdrawals isn’t entirely new in crypto security. Major exchanges like Coinbase have offered “vault” accounts with a fixed 48-hour withdrawal delay and multi-approval steps as an extra safeguard for large holdings. SwissBorg’s implementation takes the idea further by allowing delays up to three months and applying it app-wide in a set-and-forget manner. This added friction can significantly boost security for users who opt in, albeit at the cost of some liquidity – one cannot instantly send funds out of SwissBorg if the feature is active, even in legitimate situations, until the timer runs down. However, for many long-term investors, that trade-off is worthwhile for the protection it provides.
Withdrawal Protection complements SwissBorg’s broader “defense in depth” approach to safeguarding crypto wealth. The platform already employs advanced measures on the digital front, such as multi-party computation (MPC) keyless wallet technology to eliminate single points of failure in custody, and a Proof of Liabilities mechanism that lets users verify their assets are fully accounted for on SwissBorg’s balance sheets at any time. These features help protect against hacks and ensure transparency. By adding a dedicated safeguard against physical attacks, SwissBorg is acknowledging that security is not only about code and encryption but also about protecting users themselves. It’s an additional layer that extends protection beyond cyberspace to the meatspace risks of holding crypto.
From an ease-of-use perspective, SwissBorg has structured the new feature to be as unobtrusive as possible in day-to-day usage. Because internal trading and transfers within the app remain instant (and things like SwissBorg’s Smart Send require verified identities), users can still manage their portfolios and move assets in trusted contexts normally. The time-lock only kicks in when attempting to withdraw crypto outside the SwissBorg ecosystem, precisely the moment when funds could be lost irretrievably if sent under duress to an attacker’s wallet.
SwissBorg’s introduction of Withdrawal Protection shows a growing focus on user safety in the crypto industry, extending beyond technical hacks to address threats of physical robbery. By empowering users with a self-imposed withdrawal freeze, the company aims to make its user base less attractive targets for criminals. It remains to be seen how widely SwissBorg’s users will adopt this opt-in feature, but its arrival is timely. Other crypto firms may follow suit if such personal security tools prove effective in reducing incidents.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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