Amid the recent rise in physical threats targeting cryptocurrency investors with significant assets, a growing demand for personal security services has been observed. According to Bloomberg, Jethro Pijlman, managing director of Amsterdam-based security and intelligence firm Infinite Risks International, shared this development.
We’ve had more inquiries, more long-term clients, and more proactive requests from crypto investors who don’t want to be caught off guard.
Told Bloomberg:
In light of a series of kidnappings and the Coinbase security breach, an increasing number of major cryptocurrency holders have been reported to be engaging private security companies for protection.
It has been stated by Pijlman that intelligent security precautions are being recognized by crypto investors as a necessary expense when operating at a high level in the industry.
Rise in Kidnappings Validates Previous Security Fears
In 2013, as Bitcoin (BTC) prices soared, bodyguards were hired by early investors as a symbol of affluence. However, over the past decade, personal security has been increasingly regarded as essential, following a rise in cases of kidnapping and extortion targeting crypto holders.
Efforts to strengthen security measures have been made by concerned investors since 2018, though many had not taken the step of employing bodyguards. However, following the January incident in which Ledger hardware wallet co-founder David Balland and his wife were kidnapped and held hostage, bodyguards have increasingly been hired and personal security significantly enhanced by prominent figures in the crypto space, according to a report by Wired.
More than 20 instances of physical assaults targeting crypto holders have been recorded worldwide on a continuously updated public ledger maintained by Bitcoin security specialist Jameson Lopp. These increasing threats have reinforced prior apprehensions expressed by members of the crypto community.
Earlier this month, the father of a cryptocurrency entrepreneur was reportedly abducted in France. Just this week, fear was instilled among crypto executives after a video surfaced showing a failed kidnapping attempt targeting the daughter and grandson of the CEO of the French crypto platform Paymium.
In response to the recent wave of attacks, a commitment to bolster security for cryptocurrency executives in France was made by the French government. As reported by Politico, the measures include prioritized access to police emergency services, home security assessments, and safety briefings conducted by law enforcement. The decision was reached on Friday following a meeting between French Interior Minister Bruno Retailleau and prominent crypto entrepreneurs.
Crypto Holders Face Elevated Threat Levels
In the recent Coinbase breach, names, contact details, identification documents, and partially obscured banking and social security information of victims were accessed by the attackers. It was stated by Coinbase that the incident occurred due to support staff leaking confidential data under bribery and impacted fewer than 1% of its active monthly user base.
The ability of hackers to trace the physical whereabouts of affluent cryptocurrency executives has sparked concern among investors. According to Bloomberg, Ronghui Gu, a computer science professor at Columbia University and co-founder of the blockchain security company CertiK, shared this observation.
Crypto traders are acutely concerned about their privacy during data leaks. Cryptocurrency can be transferred with just a private key, and is extremely difficult to recover.
Gu further noted that this system of accessing crypto wallets renders traders “prime targets for criminals.” As cybersecurity defenses grow more advanced and hacking becomes increasingly challenging, malicious actors are believed to be resorting to physical intimidation to obtain access to digital assets. This point was echoed by Charles Marino, CEO of the security firm Sentinel, who stated:
Right now, the crypto threat landscape is very high.
Millions Spent by Crypto Companies to Protect CEOs
Millions are spent annually on personal protection by numerous crypto entrepreneurs and individuals possessing substantial digital wealth. The significant financial commitment has been viewed as a clear indication of the necessity for such security arrangements.
Coinbase CEO Brian Armstrong serves as a notable example, with $6.2 million reportedly spent on his personal security in 2024. This amount was exceeded the total security expenditure allocated for the CEOs of JPMorgan Chase, Goldman Sachs, and Nvidia combined.
In a similar manner, an amount of $800,000 was allocated by Circle last year for the security of its CEO, Jeremy Allaire. Meanwhile, a sum of $1.6 million was reported to have been spent by Robinhood on safeguarding CEO Vlad Tenev.
A variety of security services are provided by Infinite Risks International to its clients, including the deployment of bodyguards, armored vehicle transportation, residential security systems, and social media monitoring to prevent the disclosure of physical locations. This was stated by Pijlman.
It often takes a close call or a story in the news to prompt action, but once they understand the threat, they want to take it seriously. People are waking up to the fact that their digital success can create very real-world risks.
