Skyrocketing cryptocurrency theft leads to emergence of insurance policies against digital asset kidnapping
In the bustling city of New York, a high-profile case involving an Italian businessman who was allegedly abducted and subjected to repeated torture is currently under investigation. The suspects targeted the victim in an effort to force him to disclose the password to his Bitcoin wallet, highlighting a growing concern in the world of cryptocurrency.
This surge in crypto-related kidnappings, often referred to as “wrench attacks”, has been on the rise in 2025. According to recent reports, physical attacks against Bitcoin and cryptocurrency holders are expected to double compared to previous years. These attacks involve criminals using violence or coercion to force victims to transfer crypto holdings, often demanding ransoms in cryptocurrency.
Notable cases include the kidnapping of David Balland, co-founder of French crypto firm Ledger, and his wife, with ransom paid in crypto. There was also the abduction of a crypto-millionaire’s father in France, with ransom demands in the multi-million euro range and brutal violence involved. An attempted kidnapping of the daughter and grandson of a French crypto entrepreneur was also foiled.
In response to this rising threat, the kidnap and ransom (K&R) insurance market and crypto security measures are evolving. K&R insurance policies are increasingly covering cryptocurrency-specific ransom demands and extortion scenarios. Security protocols around crypto holders are becoming more sophisticated, with increased use of personal security, secure hardware wallets, multi-signature wallets, and institutional custody solutions.
Blockchain forensic firms and law enforcement agencies are expanding capabilities to trace stolen crypto funds and identify ransom payments to disrupt criminal networks. This uptick in physical crypto-related crimes correlates with the growing value and adoption of cryptocurrency, which incentivizes criminals seeking quick, large payouts in untraceable digital assets.
In Argentina, a young Russian couple involved in the cryptocurrency industry was reportedly abducted and held for ransom. They were released after their captors received a $43,000 payment in digital currency.
Several companies are reportedly working on coverage designed to protect crypto investors and businesses from the risks of abduction and violence. AnchorWatch, a crypto insurance firm, has begun developing kidnap and ransom coverage in response to growing fears of violence targeting cryptocurrency holders.
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. Rebecca Rubenfeld, Chief Operating Officer of AnchorWatch, stated that concerns over physical security were a prominent topic at the 2025 Bitcoin Conference.
It is crucial for high-profile Bitcoin holders to make it known that only a limited portion of their crypto assets is accessible. The majority of crypto assets should be safeguarded with credentials stored in secure, offline locations such as banks or safety deposit boxes.
This article does not constitute financial advice. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions. The rise in K&R insurance offerings within the cryptocurrency sector is unsurprising, as the coverage tends to be highly profitable for insurers, despite actual kidnapping incidents remaining relatively rare.
References: 1. Crypto Crime Report 2025 2. Crypto Kidnapping Scandal Ties NYPD Detectives to Shocking Plot 3. New Crypto Kidnapping Risk: Bitcoin Surge Fuels Physical Crimes 4. Florida Teens Charged After $4M Crypto Kidnapping in Nevada Desert 5. Blockchain Forensics Firms to Play Key Role in Tracing Stolen Crypto Funds
- Amidst the growing concern over cryptocurrency-related crimes, such as the recent abduction of an Italian businessman for his Bitcoin wallet, the kidnap and ransom (K&R) insurance market and crypto security measures are evolving to protect high-profile Bitcoin holders.
- In response to the uptick in physical attacks against crypto holders, including the abduction of a young Russian couple in Argentina, some insurance firms like AnchorWatch are developing specialized kidnap and ransom coverage for the crypto industry.
