Crypto Investors Boost Security Spending Amid Rising Physical Threats

Crypto investors are increasingly prioritizing personal security measures as physical threats against them surge. Amsterdam-based security firm Infinite Risks International has seen a rise in inquiries and long-term clients from crypto investors who are taking proactive steps to safeguard themselves. Jethro Pijlman, the managing director of the firm, noted that investors are recognizing the importance of intelligent security measures as part of their business operations.

This trend is not new; concerns about physical security for crypto investors have been growing since 2013 when the price of Bitcoin surged. Early investors began employing bodyguards as a display of wealth, but the need for personal security became more pressing as kidnappings and extortions increased over the past decade. The kidnapping of Ledger co-founder David Balland and his wife in January this year marked a turning point, prompting many crypto elites to hire bodyguards and enhance their personal security.

Incidents of physical attacks on crypto holders have been documented globally, with over 20 cases recorded on a public ledger maintained by Bitcoin security expert Jameson Lopp. Recent high-profile incidents include the abduction of a crypto entrepreneur's father in France and a failed kidnapping attempt on the daughter and grandson of the CEO of French cryptocurrency platform Paymium. These events have heightened fears among crypto executives and led to increased security measures.

The French government has responded to these threats by promising to enhance security for crypto executives in the country. This includes providing priority access to the police emergency line, conducting home visits, and offering safety guidance and briefings from law enforcement. The decision was made after French Interior Minister met with wealthy crypto entrepreneurs.

The threat to crypto holders is considered very high, as perpetrators can track down the physical locations of wealthy executives. The recent Coinbase hack, where sensitive information of victims was leaked, has raised alarms among investors. Ronghui Gu, a professor of computer science at Columbia University and co-founder of blockchain security firm CertiK, highlighted that crypto traders are prime targets for criminals due to the ease of transferring cryptocurrency with just a private key. Charles Marino, CEO of the security firm Sentinel, echoed this sentiment, stating that the current crypto threat landscape is very high.

Several crypto entrepreneurs and holders of massive crypto wealth are spending millions each year on personal security. For instance, Coinbase spent $6.2 million in 2024 on the personal security of its CEO, Brian Armstrong. Similarly, Circle spent $800,000 last year on security for its CEO, Jeremy Allaire, while Robinhood spent $1.6 million on CEO Vlad Tenev. These expenditures underscore the critical need for such measures in the crypto industry.

Infinite Risks International offers 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 emphasized that while it often takes a close call or a news story to prompt action, once investors understand the threat, they take it seriously. He noted that people are becoming aware that their digital success can create very real-world risks.