Tokarev's Bron Labs Combats Crypto's Security Crisis with Guardian-Approved Recovery

Dmitry Tokarev, founder of crypto custody firm Copper Technologies Ltd., is set to launch Bron Labs, a self-custody platform designed to address growing security challenges in the digital asset space. The platform, which aims to provide advanced protection for both retail and professional users, has already secured $15 million in funding from 140 investors, including LocalGlobe, Fasanara Digital, and GSR, according to a Coinotag report. Tokarev, who previously led Copper, stepped down as CEO in October to focus on building Bron, though he remains on the board and as the company's largest shareholder, the Coinotag article added.

The move comes amid rising concerns over the vulnerabilities of self-custody. Cryptocurrency holders typically rely on complex seed phrases to access their wallets, but these phrases are prone to loss, theft, or physical coercion—so-called "wrench attacks." Over 50 such incidents have been documented this year, according to data compiled by crypto security expert Jameson Lopp. "Crime is on the rise, paranoia is at an all-time high, and those problems don't exist in the institutional market," Tokarev said in an interview with Bloomberg. Bron Labs seeks to mitigate these risks by introducing a recovery mechanism that requires users to appoint two "guardians" to approve any account recovery, followed by a 48-hour delay before funds can be accessed, Bloomberg reported.

The funding round for Bron Labs underscores the market's demand for robust custody solutions. Investors such as LocalGlobe and GSR, which have previously backed blockchain infrastructure projects, joined the round, signaling confidence in the platform's potential to bridge the gap between institutional-grade security and individual users, Phemex noted. Phemex also observed that the $15 million raise reflects broader industry trends, as fragmented custody solutions struggle to meet the needs of a rapidly expanding crypto user base.

Meanwhile, Copper has undergone leadership changes to align with its institutional focus. Amar Kuchinad, a former Goldman Sachs managing director, has been appointed as the firm's new CEO, replacing Tokarev, the Coinotag article reported. This shift highlights the growing importance of institutional-grade services in the crypto sector, where regulatory scrutiny and security demands are intensifying.

Tokarev's new venture builds on his previous work in crypto custody but expands the scope to address a critical pain point for everyday users. By leveraging institutional-level security tools—previously reserved for large enterprises—Bron Labs aims to democratize access to safer self-custody options. The platform's launch marks a pivotal moment in the evolution of crypto security, as the industry grapples with balancing user control with the need for enhanced protection.