A surge in violent crimes targeting cryptocurrency holders is pushing insurers to launch specialized kidnap and ransom (K&R) policies designed for the digital asset space. With crypto-related abductions rising globally, insurance providers and high-net-worth investors are responding to a new and dangerous form of personal risk.
At least three companies—AnchorWatch, Relm Insurance, and Hylant Capital—are developing coverage aimed at crypto executives and large-scale investors. Rebecca Rubenfeld, COO of AnchorWatch, said concerns about targeted attacks were a dominant topic at the recent Bitcoin Conference in Las Vegas. “They’re tense,” she noted, confirming that AnchorWatch could debut its K&R product as early as this fall.
This concern is not hypothetical. While attacks on crypto holders have occurred for years, recent high-profile incidents—like the kidnapping and torture of an Italian tourist in New York and coordinated assaults on crypto executives in France—have revealed the extent of the threat facing those with access to large crypto wallets.
Unlike traditional banking systems with fraud protection and transaction reversibility, crypto accounts are often secured only by private keys or seed phrases. This makes them highly susceptible to physical coercion, especially when stored in personal wallets. As the digital asset space matures, the concentration of wealth has created a new class of at-risk individuals, prompting insurers to move quickly.
Andrew Kurt, vice president of executive risk at Hylant Capital, emphasized the high-stakes nature of the coverage.
“We’re not talking about widespread events, but when they do happen, they’re significant,” he told reporters.
Insurers are also introducing variable premiums based on lifestyle and risk mitigation. Clients with full-time security teams may qualify for lower rates due to reduced exposure. As crypto evolves from a purely digital holding into a real-world liability, insurers are adapting to meet the needs of this new asset class.
Violent Crypto Crimes Rise, Security Demand Soars
The crypto industry is witnessing a troubling increase in physical threats, prompting executives and investors to seek private security. From staged crypto deals turning into robberies to attempted kidnappings, personal safety concerns are becoming more urgent across the sector.
On May 27, South Korean police arrested a Russian national accused of planning a robbery disguised as a crypto transaction. According to authorities, the suspect lured Korean investors to a hotel under false pretenses and attempted to steal around 1 billion won (approximately $730,000) in cash.
Just weeks earlier, the family of Pierre Noizat, CEO of French crypto exchange Paymium, narrowly escaped a kidnapping attempt. These incidents have intensified fears that crypto’s public success is painting targets on the backs of its most visible participants.
In response, security firms are experiencing heightened demand. Amsterdam-based Infinite Risks International reported a significant increase in requests for personal protection from crypto industry clients. As digital wealth becomes more visible, so too does the need for tangible safeguards in the real world.
Quick Facts
- Insurance firms are developing kidnap and ransom policies specifically for cryptocurrency holders.
- The unique attributes of digital assets make crypto investors prime targets for criminals.
- Recent global incidents have underscored the urgency of these threats.
- Tailored insurance products aim to address the personal security risks faced by crypto executives.
