Binance is launching a withdrawal lock to help deter crypto wrench attacks
The lock is meant to protect users from being forced into withdrawing their funds, though it’s an internal policy and not a cryptographic lock.
What to know:
- Binance launched “Withdraw Protection,” a user-controlled lock (1-7 days) on withdrawals to counter “wrench attacks” (physical coercion) in high-risk scenarios.
- The lock does not shield accounts from law enforcement orders.
- The feature addresses a major rise in coercion incidents. Binance also advised users to secure API keys from trading bots and manage their online footprint.
In an interview with CoinDesk, the exchange’s Chief Security Officer Jimmy Su said the company built the feature in response to patterns it observed in the wild, including “withdrawals that are more risky or even coerced in some cases.”
He pointed to users traveling to regions where being identifiable as a crypto holder carries physical risk.
“We are seeing a pattern where some of the users might go to more risky geographical locations,” Su said. “They want to have this user-control layer where they can put in a restriction on withdrawals. In case anything happens, that would give them more time to recover.”
Asked whether the feature was a defense against wrench attacks specifically, Su said that was one scenario, alongside cases in certain regions where bad actors actively work to identify crypto users for in-person targeting.
