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A wave of violent attacks on cryptocurrency holders is pushing insurers to develop new protections aimed at a growing physical threat: kidnapping for crypto.<\/p>\n
At least three firms specializing in crypto insurance and security are now preparing tailored kidnap and ransom (K&R) policies for digital asset investors, according<\/a> to a recent report from NBC News.<\/p>\n Rebecca Rubenfeld, chief operating officer of AnchorWatch, said fear of violence was a dominant topic at this week\u2019s Bitcoin Conference in Las Vegas. \u201cThey\u2019re tense,\u201d Rubenfeld said. Her firm expects to launch K&R coverage by fall.<\/p>\n Physical attacks on crypto holders are not new, with cases documented for over a decade. But recent incidents, including the prolonged torture of an Italian tourist<\/a> in Manhattan and kidnappings of crypto executives in France, have intensified concerns.<\/p>\n The decentralized nature of cryptocurrencies<\/a> makes crypto executives attractive targets. Accounts are controlled by individuals, transactions are irreversible, and assets can be laundered if criminals extract access credentials.<\/p>\n Related:\u00a0<\/strong><\/em>Crypto investor loses $2.6M in stablecoins in double phishing scam<\/strong><\/em><\/a><\/p>\n Crypto wealth is turning to traditional K&R insurance, which is common for corporate executives. Andrew Kurt, vice president of executive risk at Hylant Capital, noted that K&R has historically been highly profitable for insurers due to its low claim frequency but high severity.<\/p>\n \u201cI think what has occurred is probably not going to be a large frequency issue, but more of a severity issue here and there,\u201d Kurt said.<\/p>\n Relm Insurance CEO Joseph Ziolkowski said his firm is finalizing its K&R offering, but pricing is complex, requiring detailed assessments of a client\u2019s physical and cyber defenses.<\/p>\n \u201cIf someone has 24\/7 personal security detail traveling with them at all times, that obviously would be a credit and would affect premium,\u201d he said.<\/p>\n Related: <\/strong><\/em>French minister to meet crypto firms after kidnapping attempt<\/strong><\/em><\/a><\/p>\n On May 27, South Korean authorities revealed that they arrested one Russian national<\/a> accused of an attempted robbery during a fake crypto deal in Seoul. The suspect allegedly lured Korean investors to a hotel, where they tried to steal 1 billion won (approximately $730,000) in cash.<\/p>\n The incident came amid a recent uptick in crypto-related violent crimes, including kidnapping and ransom cases.<\/p>\n On May 13, the family of Pierre Noizat, the co-founder and CEO of French crypto exchange Paymium, was\u00a0targeted in an attempted kidnapping<\/a>.<\/p>\n In response, executives and investors in the crypto industry are increasingly seeking personal security services. On May 18, private firm Infinite Risks International\u00a0reported a rise in requests for bodyguards<\/a> and protection contracts from high-profile figures in the crypto space.<\/p>\nCrypto wealth adopts K&R insurance<\/h2>\n
Surge in crypto crime<\/h2>\n