Amid a recent surge in physical threats to crypto investors with substantial holdings, firms that offer personal security services are seeing increasing demand. Amsterdam-based physical security and intelligence services provider Infinite Risks International’s managing director, Jethro Pijlman, told Bloomberg:
“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.”
According to Pijlman, crypto investors are “realizing that intelligent security measures are part of the cost of doing business at this level.”
Growing kidnappings reaffirmed earlier concerns
In 2013, when the price of Bitcoin (BTC) surged, early investors employed an entourage of bodyguards as a display of wealth. But personal security emerged as a necessity as more and more investors became victims of kidnapping and extortion over the last decade.
Concerned investors have been trying to increase security measures since 2018, but they were not yet ready to hire bodyguards. After hardware wallet firm Ledger co-founder David Balland and his wife were kidnapped and held hostage in January this year, crypto elites started hiring bodyguards and beefing up personal security, Wired reported.
Around the globe, over 20 incidents of physical attacks on crypto holders have been documented on a running public ledger kept by Bitcoin security expert Jameson Lopp. The escalating threats have reaffirmed earlier concerns of crypto holders.
Early this month, the father of a crypto entrepreneur was abducted in France. Earlier this week, the video of the failed kidnapping attempt on the daughter and grandson of the CEO of French cryptocurrency platform Paymium struck fear among crypto executives.
The French government promised to increase security for crypto execs in the country in the wake of the recent attacks. This includes priority access to the police emergency line, home visits, and safety guidance and briefings from law enforcement, Politico reported. The decision was taken on Friday after French Interior Minister Bruno Retailleau met with wealthy crypto entrepreneurs on Friday.
Threat to crypto holders is ‘very high’
Perpetrators of the Coinbase hack earlier this week got hold of names, contact details, identity documents, and masked bank and social security information of victims. Coinbase claimed that the data breach, which took place because bribed support staff leaked sensitive information, affected less than 1% of its active monthly users.
However, the fact that hackers can track down the physical location of wealthy crypto executives has raised alarms for investors. A Columbia University professor of computer science and co-founder of blockchain security firm CertiK, Ronghui Gu, told Bloomberg:
“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.”
This structure of access to crypto wallets makes traders “prime targets for criminals,” Gu added. This is because bad actors, amid evolving cybersecurity measures making hacks difficult, hope to access crypto by physically endangering the holders. Charles Marino, CEO of the security firm Sentinel, stated:
“Right now, the crypto threat landscape is very high.”
Crypto firms spend millions on the personal security of CEOs
Several crypto entrepreneurs and holders of massive crypto wealth spend millions each year on personal security. The millions poured demonstrate the need for such measures.
Take Coinbase CEO Brian Armstrong, for example. In 2024, the exchange spent $6.2 million on the personal security of Armstrong, overshooting the combined budget allocated by JPMorgan Chase, Goldman Sachs, and Nvidia to ensure the protection of their CEOs.
Similarly, Circle spent $800,000 last year on security for CEO Jeremy Allaire. On the other hand, Robinhood spent $1.6 million on CEO Vlad Tenev.
Infinite Risks International offers clients a range of security services to its clients, including bodyguards, armored vehicle transports, home security, and monitoring of social media to prevent leaks of physical locations. Pijlman said:
“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.”
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