Crypto Kidnap and Ransom Insurance: A New Growth Market?

<p>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><p>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 to a recent report from NBC News.</p><p>Rebecca Rubenfeld, chief operating officer of AnchorWatch, said fear of violence was a dominant topic at this week’s Bitcoin Conference in Las Vegas. “They’re tense,” Rubenfeld said. Her firm expects to launch K&R coverage by fall.</p><p>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 in Manhattan and kidnappings of crypto executives in France, have intensified concerns.</p><p>The decentralized nature of cryptocurrencies makes crypto executives attractive targets. Accounts are controlled by individuals, transactions are irreversible, and assets can be laundered if criminals extract access credentials.</p><h2>Crypto wealth adopts K&R insurance</h2><p>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><p>“I think what has occurred is probably not going to be a large frequency issue, but more of a severity issue here and there,” Kurt said.</p><p>Relm Insurance CEO Joseph Ziolkowski said his firm is finalizing its K&R offering, but pricing is complex, requiring detailed assessments of a client’s physical and cyber defenses.</p><p>“If someone has 24/7 personal security detail traveling with them at all times, that obviously would be a credit and would affect premium,” he said.</p><h2>Surge in crypto crime</h2><p>On May 27, South Korean authorities revealed that they arrested one Russian national 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><p>The incident came amid a recent uptick in crypto-related violent crimes, including kidnapping and ransom cases.</p><p>On May 13, the family of Pierre Noizat, the co-founder and CEO of French crypto exchange Paymium, was targeted in an attempted kidnapping.</p><figure><img alt="Cryptocurrencies, Bitcoin Regulation, Hackers, United States, Cryptocurrency Exchange, Crimes, Hacks Source: Mario Nawfal" src="https://ipowercrypto.com/wp-content/uploads/2025/05/0197063b-2450-731f-81fa-b557c3c2b52d.jpg" ></figure><p>In response, executives and investors in the crypto industry are increasingly seeking personal security services. On May 18, private firm Infinite Risks International reported a rise in requests for bodyguards and protection contracts from high-profile figures in the crypto space.</p>