Hajra Naz
Investors with considerable wealth in cryptocurrencies now have new worries regarding their security. The Wall Street Journal and Bloomberg have reported on a distinct phenomenon for some time: the wealth associated with crypto is growing, and so are the dangers associated with it.
Unlike traditional assets, digital currencies can be accessed from anywhere using specific codes, and the bad news is that criminals know it. This makes crypto holders easy targets, especially when they’re well-known or public figures. Crypto investments are no longer at risk only from the virtual world; there is an increasing chance of physical threats like violence, extortion, or even kidnapping.
A frightening example would be the attempted kidnapping of the daughter and granddaughter of the CEO of Paymium, a crypto company. Three masked men tried to abduct them earlier this year. Luckily, neighbors intervened and stopped the attack, but this incident has shaken the industry.
Read More: What a Beginner Needs to Know Before Investing in Cryptocurrency
A recent security breach at Coinbase, one of the largest cryptocurrency exchanges, compromised the personal information of some users. Although the company stated that less than 1% of clients were affected, the incident has already sparked concern.
Security firms are seeing a surge in demand. Jethro Pijlman, from the Dutch firm Infinite Risks International, told Bloomberg,
“We’re getting more inquiries, more long-term clients, and more people reaching out proactively before something goes wrong.”
According to a regulatory filing, Brian Armstrong, the CEO of Coinbase, is one of the most well-known names in cryptocurrency and spent $6.2 million on its security in 2023.
That’s more than what JPMorgan Chase, Goldman Sachs, and Nvidia spend on their CEOs’ security combined.
Many wealthy crypto holders are now hiring private security, installing high-tech surveillance systems, and being extremely cautious about what they share online.
As crypto goes mainstream, the risks increase too. For those who’ve made millions or even billions in digital currency, personal safety is no longer just a privacy issue—it’s about survival.
