Crypto Investors Bolster Personal Security As Physical Attacks Rise, Report Says

The recent rise in physical threats to crypto investors with significant holdings has led to a noticeable increase in demand for personal security services. At Infinite Risks International, an Amsterdam-based security firm, the growing interest from crypto investors has led CEO Jethro Pijlman to report this week that his firm is receiving more requests, particularly from clients who want proactive security rather than reactively when it’s too late.

Security essential for crypto investors

It’s clear that crypto investors are increasingly realizing that smart security measures are a necessary cost when operating at this level. Back in 2013, during the first big Bitcoin craze, we saw early investors often come with an entourage of bodyguards to show off their wealth. But as the years have gone by and more investors have fallen victim to kidnapping and extortion, personal security has become an increasingly necessary necessity.

Since 2018, worried investors have been trying to beef up their security. However, it wasn’t until the kidnapping of David Balland, co-founder of hardware wallet firm Ledger, and his wife earlier this year that we saw a clear shift. The crypto elite are now convinced of the need for bodyguards and other security measures.

More than 20 incidents of physical attacks on crypto holders have been recorded internationally, which has only heightened concerns about the safety of crypto investors. Recently, the father of a crypto entrepreneur was kidnapped in France, and a failed kidnapping attempt on the daughter of the CEO of French crypto platform Paymium also left many crypto executives trembling.

In response to these threats, the French government has pledged to increase security for crypto executives, including prioritizing them with police and providing security advice to authorities. This marks a significant shift in how crypto investors now approach their security.

The threat level is 'very high'

The recent hack at Coinbase has shown just how vulnerable crypto owners can be. The hackers have been able to obtain sensitive information about victims, such as names, contact details and identification documents, by bribing employees. While Coinbase says this has affected less than 1% of its active users, alarms are growing that criminals can track the physical locations of wealthy crypto executives.

Crypto traders are aware of the risks that come with it. And given how difficult it has become to gain access to crypto assets in the cybersecurity world, these traders are increasingly becoming targets for criminals who use physical violence to achieve their goals. Charles Marino, CEO of Sentinel, emphasizes that the threat landscape for crypto investors is particularly unhealthy right now.

Millions in security spending for crypto leaders

Several crypto entrepreneurs invest millions in personal security every year. These huge expenditures show the necessity of such measures. Take for example Brian Armstrong, CEO of Coinbase; in 2024, the security budget for his personal security was a whopping $6,2 million, which is far above the total budget that large financial institutions like JPMorgan Chase and Goldman Sachs spend on their CEOs.

Circle spent $800.000 on security for CEO Jeremy Allaire last year, while Robinhood spent $1,6 million on CEO Vlad Tenev. Infinite Risks International offers a range of security services, including bodyguards, armored vehicles and social media monitoring to prevent information leaks from physical locations. Pijlman says it often takes a moment to close the door on a threat or a shocking news story before people start taking their security seriously. Digital successes are now taking a much harder stance on tackling real-world risks.

Frequently Asked Questions

Why are crypto investors increasingly interested in security?
Crypto investors realize that their digital wealth sometimes comes with physical risks. Security is no longer just a luxury, but a necessity.

What are the biggest threats to crypto investors?
The biggest threats come from kidnapping and extortion, especially now that criminals are able to track and target wealthy crypto holders.

How much are crypto companies investing in personal security?
Crypto companies are spending billions on personal security, with some CEOs spending millions per year on their security alone.