Hardware Wallets, Multisig Setups Vulnerable to Coerced Crypto Transfers

Hardware wallets and multisig configurations do not inherently prevent coerced crypto transfers, according to a new analysis of wallet security rules. While hardware wallets isolate private keys from online threats, they do not automatically block forced transactions initiated under duress. Similarly, multisig setups divide control among multiple signers but remain vulnerable if enough key holders are coerced into approving a transaction that meets the signing threshold. The findings highlight gaps between technical security measures and physical coercion risks in cryptocurrency custody.