{"id":12618,"date":"2025-05-31T15:33:35","date_gmt":"2025-05-31T13:33:35","guid":{"rendered":"https:\/\/wsj-crypto.com\/?p=12618"},"modified":"2025-05-31T15:33:35","modified_gmt":"2025-05-31T13:33:35","slug":"insurers-compete-to-address-crypto-related-kidnap-and-ransom-threats","status":"publish","type":"post","link":"https:\/\/wsj-crypto.com\/index.php\/2025\/05\/31\/insurers-compete-to-address-crypto-related-kidnap-and-ransom-threats\/","title":{"rendered":"Insurers Compete to Address Crypto-Related Kidnap and Ransom Threats"},"content":{"rendered":"

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A surge of aggressive assaults on cryptocurrency investors is prompting insurers to formulate new safeguards focused on an escalating physical danger: abduction for crypto.<\/p>\n

At least three businesses specializing in crypto insurance and safety are currently preparing customized kidnap and ransom (K&R) policies specifically for digital asset stakeholders, as per<\/a> a recent article from NBC News.<\/p>\n

Rebecca Rubenfeld, chief operating officer of AnchorWatch, remarked that fear of violence was a prevalent theme at this week\u2019s Bitcoin Conference in Las Vegas. \u201cThey\u2019re anxious,\u201d Rubenfeld stated. Her company anticipates launching K&R coverage by autumn.<\/p>\n

Physical assaults on crypto investors are not a recent phenomenon, with instances recorded for over a decade. However, recent events, such as the extended torture of an Italian tourist<\/a> in Manhattan and the abduction of crypto leaders in France, have heightened apprehensions.<\/p>\n

The decentralized essence of cryptocurrencies<\/a> renders crypto executives appealing targets. Accounts are governed by individuals, transactions are irreversible, and assets can be cleaned if criminals gain access credentials.<\/p>\n

Related:\u00a0<\/strong><\/em>Crypto investor loses $2.6M in stablecoins in dual phishing scam<\/strong><\/em><\/a><\/p>\n

Crypto wealth embraces K&R insurance<\/h2>\n

Crypto wealth is moving towards traditional K&R insurance, which is prevalent among corporate executives. Andrew Kurt, vice president of executive risk at Hylant Capital, highlighted that K&R has historically been very profitable for insurers due to its low claim frequency but high impact.<\/p>\n

\u201cI believe what has happened isn’t likely to be a significant frequency problem, but rather a severity issue every now and then,\u201d Kurt expressed.<\/p>\n

Relm Insurance CEO Joseph Ziolkowski mentioned that his company is finalizing its K&R offerings, but pricing is intricate, necessitating thorough evaluations of a client\u2019s physical and cyber defenses.<\/p>\n

\u201cIf someone has a 24\/7 personal security detail accompanying them consistently, that would indeed serve as a credit and impact premiums,\u201d he noted.<\/p>\n

Related: <\/strong><\/em>French minister to engage with crypto firms following kidnapping attempt<\/strong><\/em><\/a><\/p>\n

Rise in crypto-related crime<\/h2>\n

On May 27, South Korean authorities disclosed that they apprehended one Russian national<\/a> accused of attempting theft during a fraudulent crypto transaction in Seoul. The suspect allegedly enticed Korean investors to a hotel, where they attempted to steal 1 billion won (approximately $730,000) in cash.<\/p>\n

This incident took place amidst a recent increase in crypto-related violent crimes, encompassing kidnapping and ransom incidents.<\/p>\n

On May 13, the family of Pierre Noizat, the co-founder and CEO of French crypto exchange Paymium, was\u00a0targeted in a kidnapping attempt<\/a>.<\/p>\n

Source:\u00a0<\/em>Mario Nawfal<\/em><\/a><\/figcaption><\/figure>\n

In response, executives and investors in the crypto sector are increasingly pursuing personal security services. On May 18, the private firm Infinite Risks International\u00a0reported a surge in requests for bodyguards<\/a> and protection contracts from prominent figures in the crypto realm.<\/p>\n

Magazine: <\/strong><\/em>Coinbase hack demonstrates the law likely won\u2019t safeguard you: Here\u2019s why<\/strong><\/em><\/a><\/p>\n