Introduction
In response to the rising threat landscape for cryptocurrency investors, at least three insurance firms are set to introduce bespoke Kidnap & Ransom (K&R) policies tailored specifically for this market. The expected roll-out of these products is slated for this coming autumn.
Current Trends and Incidents
The uptick in robberies and attempted kidnappings targeting wealthy crypto holders, often referred to as ‘whales’, highlights a worrying trend. Notably, the Noizat family, who co-founded the French cryptocurrency exchange Paymium, were recently targeted in a kidnapping attempt. Furthermore, in Seoul, a robbery was executed under the guise of a cryptocurrency transaction, leading to an astonishing $730,000 theft.
Insurance Sector Response
A report published by Infinite Risks International, a private security firm, revealed an astonishing 300% increase in requests for bodyguard services for cryptocurrency investors since May. At the recent Bitcoin 2025 Conference, Rebecca Rubenfeld, Chief Operating Officer of AnchorWatch Insurance, announced that their specialized K&R insurance for cryptocurrencies would be available this fall.
Expert Opinions
Andrew Kurt, the Vice President of Hylant Capital, reinforced the seriousness of these risks by comparing them to executive kidnapping insurance, stating:
“While such incidents may not occur frequently, when they do, they can lead to devastating losses that may reach into the tens of millions.”
Conclusion
The introduction of specialized insurance products reflects the growing recognition of the potential dangers faced by cryptocurrency investors, signaling a pivotal shift in how this evolving market is protected.
