Physical Threats to Crypto Surge... Binance Strengthens Security with 'Withdrawal Lock' Feature

On May 4, 2026, Binance officially launched a new security feature called 'Withdrawal Lock.' This represents a significant shift toward protecting users from physical violence beyond digital hacking defenses. As the virtual asset market matures, the paradigm of exchange security is expanding from online data protection to offline physical safety.

As 'wrench attacks'—referring to physical kidnapping and extortion attempts—surged by 75% over the past year, Binance, the world's largest exchange, faced the reality that a user's greatest vulnerability might be physical safety rather than a password. As cases of criminals directly threatening victims to seize assets increased, proactive responses at the exchange level were required.

The Withdrawal Lock feature introduced by Binance is designed as a powerful deterrent to curb forced asset transfers. While this feature is not mandatory for all users, it provides a crucial safety net for high-net-worth individuals or those likely to be targeted by crime. Through this feature, users can limit asset movement in specific situations, buying time to protect their assets even under physical pressure.

With the withdrawal protection feature, users now have the capability to protect themselves from physical threats. While this is not a feature the majority of users will use daily, it will serve as a last line of defense to protect assets in extreme situations.

This mechanism weakens a criminal's motivation by delaying withdrawals or requiring additional authentication steps in situations where assets must be forcibly transferred. The intent is to protect both the user's life and property by making criminals aware that immediate asset movement is impossible even under physical pressure. The Binance security team expects these features to contribute to minimizing damage in actual threat situations.

The Rapid Spread and Current State of Wrench Attacks in 2025-2026

According to data from blockchain security firm CertiK, verified physical threat incidents increased by 75% year-over-year in 2025. A total of 72 official incidents were reported worldwide, with financial losses estimated at approximately $40.9 million. These figures show that crypto-related crimes are becoming increasingly sophisticated and violent.

• Europe has emerged as the most dangerous region, accounting for more than 40% of wrench attack incidents worldwide.
• In France specifically, 41 crypto-related kidnapping cases occurred in 2025 alone, emerging as a serious social issue.
• Criminals primarily use methods of physically attacking or threatening victims to seize private keys, with ransoms sometimes reaching millions of euros.
• These attacks mainly target users who flaunt their asset size online or neglect security protocols.

Financial losses from physical attacks increased by 44% year-over-year, but the actual scale of damage is estimated to be much larger. Due to the nature of the crime, there is a high proportion of 'dark figures' (unreported crimes) because victims often hesitate to report due to trauma or fear of retaliation. CertiK warned that the reported figures may be only a fraction of the actual incidents.

Along with the introduction of this new feature, Binance recommended compliance with multi-layered security protocols. Optimizing device management, such as clearing sessions on unused devices and deleting payment methods, is essential. They also emphasized upgrading to stronger authentication methods, such as hardware security keys or authentication apps, instead of vulnerable SMS-based two-factor authentication (2FA).

Industrial Implications and Future Outlook

As virtual asset services transition to a 'Three Giants' system in early 2026, significant changes are appearing in platform operation methods. This move by Binance suggests that physical security features are likely to become an industry standard in the future. Taking responsibility for not only the digital security of assets but also the physical safety of users is becoming a core competitiveness for exchanges.

Consequently, the paradigm of virtual asset security is evolving to encompass the user's actual living environment beyond network security. The fact that criminals' methods are becoming more direct and violent as technical defenses become more robust poses a new challenge for market participants. Other major exchanges are expected to continue the security competition by introducing similar protective measures in the future.