Insurance Firms Develop Kidnap & Ransom Policies for Crypto Wealthy

Several insurance companies are in the process of developing new policies to address the growing threat of kidnapping and ransom targeting individuals who hold significant amounts of cryptocurrency. This initiative comes in response to a surge in violent attacks aimed at crypto wealthy individuals, highlighting the need for specialized insurance products to protect against such physical threats.

The emergence of cryptocurrency has brought with it a new set of risks, particularly for those who hold large amounts of digital assets. The decentralized and often anonymous nature of cryptocurrencies makes them an attractive target for criminals, who may resort to violent means to extort ransoms. Insurance companies are now recognizing this trend and are working to create policies that specifically cover violent threats and kidnapping incidents related to cryptocurrency holdings.

These new policies are designed to provide comprehensive coverage for individuals who may be targeted due to their crypto wealth. This includes protection against physical harm, as well as financial compensation for any ransom payments made to secure the individual's release. By offering such specialized insurance, companies aim to provide peace of mind to crypto holders, who may otherwise be vulnerable to these types of attacks.

At least three professional insurance companies are developing customized Kidnap & Ransom (K&R) insurance for cryptocurrency investors, with the first batch of products expected to be launched this fall. In recent times, there have been numerous cases of violent threats against cryptocurrency whales, with the Noizat family, co-founders of the French exchange platform Paymium, experiencing an attempted kidnapping. In Seoul, a robbery incident disguised as a cryptocurrency transaction took place, involving $730,000. The demand for bodyguards for cryptocurrency whales has surged by 300% since May.

Rebecca Rubenfeld, COO of AnchorWatch Insurance, stated at the Bitcoin 2025 Conference that a cryptocurrency-specific customized Kidnap & Ransom insurance product will be launched in the fall. Andrew Kurt, Vice President of Hylant Capital, commented, "This is not a high-frequency risk but an extremely serious event, similar to executive kidnapping insurance, where there may only be one case in a decade, but that single case could result in a loss of tens of millions of dollars."

The development of these policies underscores the evolving landscape of the insurance industry, which must adapt to new risks and threats as technology and financial systems change. As cryptocurrencies continue to gain mainstream acceptance and value, the need for tailored insurance solutions will likely become even more pronounced. Insurance companies are positioning themselves to meet this demand, ensuring that their clients are protected against the unique challenges posed by the digital age.