A growing number of violent incidents targeting cryptocurrency holders has prompted insurers to develop new protections aimed at digital asset investors.
Firms specializing in crypto insurance are now preparing kidnap and ransom (K&R) policies designed for individuals at risk of physical attacks and extortion.
This development follows a spike in high-profile abductions, including an incident in Manhattan where an Italian tourist was tortured, and another in France targeting a crypto exchange CEO’s family.
New Risks Demand Tailored Solutions
Rebecca Rubenfeld, COO of AnchorWatch, said personal safety was a dominant concern at this week’s Bitcoin Conference in Las Vegas.
“They’re tense,” she said, confirming her firm will launch K&R coverage by fall.
These policies are modeled after those typically offered to corporate executives but tailored to the unique vulnerabilities of crypto holders.
Crypto accounts are individually controlled, irreversible, and often untraceable—making holders lucrative targets.
Pricing Depends on Personal Security Measures
Relm Insurance CEO Joseph Ziolkowski said his firm is also preparing a crypto-focused K&R product.
However, pricing such policies is complex and depends on each client’s physical and cyber defense protocols.
“If someone has 24/7 personal security detail traveling with them at all times, that obviously would be a credit and would affect premium,” Ziolkowski explained.
Andrew Kurt of Hylant Capital noted that while claim frequency may remain low, the financial and reputational impact of these crimes can be severe.
Violent Crypto Crimes on the Rise
Authorities around the world are increasingly dealing with crypto-related violence.
In one recent case, South Korean officials arrested a Russian national for attempting to rob investors of 1 billion won (about $730,000) during a fake crypto transaction at a hotel in Seoul.
Just weeks earlier, the family of Pierre Noizat, CEO of Paymium, was targeted in a foiled kidnapping attempt.
In response, demand for private security services is growing.
On May 18, Dutch firm Infinite Risks International reported a noticeable increase in bodyguard requests from high-net-worth individuals in the crypto sector.
As the industry matures, safeguarding both assets and lives is becoming a new frontier in cryptocurrency risk management.