Insurers Working on Ransom and Kidnapping Policies

Several US-based security and insurance companies are redesigning their K&R coverage to fit the needs of digital asset investors as attacks continue to rise. Rebecca Rubenfeld, COO of AnchorWatch, stated that fear of violence was one of the dominant topics at the Bitcoin Conference in Las Vegas. According to Rubenfeld, the K&R policies will be launched in the fall.

Physical attacks on cryptocurrency holders have been known for a long time. However, recent incidents – such as the torture of an Italian tourist in Manhattan and the kidnapping of crypto executives in France – have deepened concerns. The decentralized nature of cryptocurrencies and the irreversibility of transactions make investors prime targets.

Crypto Wealth Turns to Ransom Insurance

Wealthy individuals in the crypto sector are now turning to ransom and kidnapping policies that were previously reserved for corporate executives. According to Andrew Kurt from Hylant Capital, these policies are among the most profitable for insurers due to their low frequency but high payout nature.

“I don’t think this will happen often, but when it does, the consequences can be severe,” said Kurt.

Relm Insurance CEO Joseph Ziolkowski noted that their K&R product is nearly complete. However, he emphasized that pricing is not simple and requires detailed evaluation of both physical and cyber protection measures. “If someone travels with a 24/7 personal security team, that obviously becomes a credit factor and reduces the premium,” he added.

Rise in Crypto-Related Crime

An incident in South Korea on May 27 further increased concerns in the sector. A Russian national attempted to steal around 1 billion won (approximately $730,000) in cash by luring investors to a hotel in Seoul under the pretense of a fake crypto deal.

Just two weeks earlier, the family of Pierre Noizat, co-founder of the French crypto exchange Paymium, was the target of a failed kidnapping attempt.

Following these events, many crypto investors and executives have turned to personal security services. On May 18, private security firm Infinite Risks International reported an increase in protection requests from high-profile figures within the crypto space.

These developments highlight that cryptocurrencies face not only cyber threats but also real-world risks, pushing digital asset holders to be more vigilant.

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