Crypto Investors Enhance Personal Security Amid Rising Physical Attacks: Report
Recent heightened dangers faced by crypto investors with large assets have led to a surge in demand for personal security services. Jethro Pijlman, the managing director of Amsterdam-based Infinite Risks International, shared that the firm has seen an upsurge in inquiries and requests for long-term security arrangements, indicating that crypto investors are becoming increasingly proactive in safeguarding themselves.
“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.”
Pijlman noted that many crypto investors are coming to the realization that investing in robust security measures is now a fundamental aspect of managing their wealth.
Escalating Kidnappings Highlight Earlier Warnings
Back in 2013, the rapid rise in Bitcoin’s value led early adopters to hire bodyguards, showcasing their newfound wealth. Over the last ten years, however, incidents of kidnapping and extortion have compelled many investors to reconsider personal security as a necessity.
Since 2018, alarmed investors have been looking to enhance their security but hesitated to engage bodyguard services. Following the abduction of Ledger co-founder David Balland and his spouse earlier this year, there has been a noticeable increase in demand for personal security among affluent crypto investors, as reported by various media outlets.
Around the world, over 20 documented physical assaults on cryptocurrency holders have been tracked by Bitcoin security expert Jameson Lopp, underscoring a growing concern among holders about their safety.
Recently, a crypto entrepreneur’s father was kidnapped in France, and a failed abduction attempt on the offspring of a CEO from Paymium has sent shockwaves through the crypto community.
In response to these alarming incidents, the French government has committed to bolstering security for cryptocurrency executives, offering priority police access, home safety inspections, and guidance from law enforcement, as confirmed after discussions between the French Interior Minister and crypto entrepreneurs.
High Risk for Crypto Investors
The recent Coinbase hack, which compromised sensitive personal information of some users, has heightened fears among cryptocurrency investors. Although Coinbase stated that the breach affected under 1% of its users, the capability of hackers to identify the physical locations of wealthy individuals is causing significant concern.
Ronghui Gu, a professor at Columbia University and co-founder of CertiK, mentioned to media representatives that concerns regarding privacy are escalating among crypto traders due to such leaks.
“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 wallet access structure positions traders as appealing targets for criminals. As efforts to enhance cybersecurity evolve, malefactors increasingly resort to physical threats to access crypto assets. Charles Marino, CEO of Sentinel, emphasized the current landscape.
“Right now, the crypto threat landscape is very high.”
Significant Security Investments by Crypto Companies
For instance, in 2024, Coinbase allocated $6.2 million for the security of CEO Brian Armstrong, surpassing the total budget set aside for CEO protection by major firms like JPMorgan Chase, Goldman Sachs, and Nvidia.
Likewise, Circle invested $800,000 in safeguarding CEO Jeremy Allaire, while Robinhood devoted $1.6 million for CEO Vlad Tenev’s security.
Infinite Risks International provides a variety of security options, including personal bodyguards, armored transport, home protection, and social media monitoring to avert leaks of sensitive information. Pijlman noted the realization among clients regarding the tangible risks stemming from their digital successes.
“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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