Michaela
A recent surge in kidnappings involving crypto investors has led insurance firms to reassess risk strategies and introduce new measures aimed at safeguarding clients’ physical security.
According to NBC, a growing number of firms that specialize in insurance and security for cryptocurrency holders are now developing kidnap and ransom (K&R) policies in response to rising concerns over physical threats. At least three such companies are reportedly working on coverage designed to protect crypto investors and businesses from the risks of abduction and violence.
Rebecca Rubenfeld, Chief Operating Officer of crypto insurance firm AnchorWatch, stated that concerns over physical security were a prominent topic at the 2025 Bitcoin Conference. The company has since begun developing kidnap and ransom coverage in response to growing fears of violence targeting cryptocurrency holders.
“They’re tense,” Rubenfeld stated. “I’m not saying that because I’m trying to sell insurance, but overall, the mood is a very good environment for me,” she added.
Additionally, Ryan Lackey, Chief Security Officer at digital asset insurer Evertas, emphasized that the most effective protection for high-profile Bitcoin holders involves both visible security measures and clear public messaging.
Lackey noted that it’s crucial to make it known that only a limited portion of their crypto assets is accessible. The majority, he advised, should be safeguarded with credentials stored in secure, offline locations such as banks or safety deposit boxes.
“The ideal product in the space is actually something where you can probably not get access to funds beyond a certain amount, and then you can pay them a small amount. This has to be something that’s widely adopted, that’s known by the dumbest possible kidnappers in the world, because they’d otherwise have no reason to believe it,” Lackey stated.
Furthermore, Andrew Kurt, vice president of executive risk at Hylant Capital, noted that the rise in K&R insurance offerings within the crypto sector is unsurprising. He explained that the coverage tends to be highly profitable for insurers, as actual kidnapping incidents remain relatively rare despite heightened concerns among crypto firms and investors.
In recent weeks, there has been a notable uptick in reported kidnapping incidents involving crypto investors worldwide. In New York, authorities are investigating a high-profile case involving an Italian businessman who was allegedly abducted and subjected to repeated torture. According to reports, the suspects targeted the victim in an effort to force him to disclose the password to his Bitcoin wallet.
In Argentina, a young Russian couple involved in the cryptocurrency industry was reportedly abducted and held for ransom. The pair was released after their captors received a $43,000 payment in digital currency, according to local reports.
Additionally in Paris, the daughter and grandson of Pierre Noizat, CEO and co-founder of the cryptocurrency exchange Paymium, were targeted in a foiled attempted kidnapping by armed assailants.
Read More
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- New Crypto Kidnapping Risk: Bitcoin Surge Fuels Physical Crimes
- Florida Teens Charged After $4M Crypto Kidnapping in Nevada Desert
Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
