The $5 wrench attack

[Vaskiy]

I'll just move the funds to a new wallet and keep the paper wallet. This will keep me secure, though he gets to know about the funds going from one wallet to the other. If this too isn't that secure will import to the desktop wallet. Furthermore I don't think someone will attack and request in such a way about the private keys.

[o_e_l_e_o]

To think of it, torturing is way worse than surrendering your crypto. Getting maimed/ killed just to protect your crypto is just too scary.

If you are in the situation of the "$5 wrench attack", there is also nothing stopping the attacker from forcing you to log in to your online banking or reveal your credit/debit card PINs and clearing out all your fiat as well.

-snip-

Deniable plausibility only works as long as it is deniable. A hidden and encrypted OS behind a password is no more secure per se than a hidden wallet behind a passphrase on a hardware wallet, provided you set them both up correctly and there is no way to prove they exist.