As the value of Bitcoin and other cryptocurrencies continues to rise, so do fears for the personal safety of those who hold them. A wave of brutal crypto kidnappings and assaults is driving a new trend: kidnap and ransom insurance (K&R), tailored specifically for crypto holders.
Now, insurance companies are stepping in, not just to cover financial losses, but to protect lives. From industry executives to everyday investors with large digital wallets, many are waking up to the risks of physical violence tied to their crypto wealth.
A New Market for Old Fears
Several insurance companies and security firms are now racing to develop products specifically designed for the cryptocurrency world. These firms, including AnchorWatch, Evertas, and Relm, are building K&R insurance products tailored to crypto investors, executives, and firms facing the threat of crypto kidnapping.
K&R insurance isn’t new. It’s long been offered to high-level corporate executives and diplomats. But this is the first time we’re seeing the service targeted directly at crypto holders, whose assets are highly liquid, hard to trace, and often controlled by a single person.
According to Rebecca Rubenfeld, COO of AnchorWatch, the demand is real and growing.
“They’re tense,” she said during the Bitcoin Conference in Las Vegas, held in May 2025.
“I’m not saying that because I’m trying to sell insurance, but overall, the mood is a very good environment for me.”
A Decade of Attacks, Now More Severe
Physical attacks on Bitcoin holders have been reported for more than 10 years, but the severity and frequency of recent incidents are alarming, and fueling fears of crypto kidnapping.
One high-profile case involved an Italian tourist in Manhattan, who was tortured for weeks by criminals seeking access to his Bitcoin. In France, a series of kidnappings of crypto executives and their families has raised alarm bells across Europe.
These events have rattled the global crypto community, especially because crypto assets are unlike traditional bank accounts. They’re usually controlled by one person, often stored on personal devices, and transactions are irreversible once completed.
This makes them highly attractive targets for criminals who can force a victim to transfer assets under duress and vanish without a trace — the core scenario of most crypto kidnapping cases.
Insurance Firms Move In
Companies like Evertas Insurance, which provides digital asset insurance, are now encouraging wealthy clients to consider kidnap and ransom coverage to protect against the growing threat of crypto kidnapping.
Ryan Lackey, Chief Security Officer at Evertas, says the best defense is not just insurance, but also public strategy.
“The ideal product in the space is actually something where you can’t get access to funds beyond a certain amount,” Lackey said.
“You want kidnappers to know that even if they force you, you can’t unlock most of your crypto. It’s like the signs at 7-Eleven that say ‘cashier does not have access to the safe.’”
Lackey believes publicly declaring limited access to crypto holdings might actually discourage crypto kidnapping attempts. Evertas is also exploring how to offer K&R insurance directly to individuals.
High Premiums, Low Payouts: Why Insurers Love K&R
Traditional insurance companies are also eyeing this emerging market. K&R insurance has long been a high-margin business, offering coverage with relatively low risk, since actual kidnappings are rare, even as crypto kidnapping cases begin to grow in visibility.
Andrew Kurt, VP of Executive Risk at Hylant Capital, says that the line of business is historically profitable.
“K&R has been a wildly profitable line for insurance companies, even though the premiums are very, very small,” Kurt told NBC News.
“The losses are few and far between.”
He notes that while crypto-related incidents are not likely to become a frequent issue, they may be severe when they do happen, making K&R a strategic product for both insurers and clients concerned about crypto kidnapping.
Relm Looks to Launch K&R Products
Another major player, Relm Insurance, is also working on a crypto-focused K&R product. According to CEO Joseph Ziolkowski, the firm is still evaluating risk models and client screening processes before launching.
Ziolkowski explains that coverage pricing depends on multiple factors, including personal and cyber security measures.
“There’s a base rate, and that gets debited or credited depending on risk factors,” he said.
“If someone has 24/7 personal security, that lowers the risk and affects the premium.”
For now, Relm is carefully evaluating how to underwrite such high-risk clients, especially in a space where digital and physical security must be evaluated together to defend against crypto kidnapping.
When Privacy Becomes a Liability
For many crypto holders, the solution has been to simply disappear from public view. But for others — especially CEOs, influencers, and public-facing developers — that’s not an option.
Some are known figures because of their work, their conference appearances, or media exposure. And others are exposed without consent.
Earlier this month, Coinbase, the largest crypto exchange in the U.S., confirmed a major data breach. Nearly 70,000 customers had their names, addresses, and personal information leaked to cybercriminals. Some victims were tricked into giving up their funds through phishing attacks, exposing them not just to financial loss, but also to real-world threats.
The Future of Crypto Safety
The rise of K&R insurance in the crypto world highlights a troubling new reality: as digital wealth grows, so do the risks to physical safety.
Crypto investors now must consider more than just cold storage and two-factor authentication. They must think about bodyguards, safe houses, and insurance companies offering policies once reserved for billionaires and diplomats.
For insurance companies, this is a rare opportunity. With crypto adoption spreading and wealth becoming more concentrated, K&R products could become the new gold standard in executive protection.
Whether you’re a public crypto executive or a quiet whale holding millions in Bitcoin, the message is clear: in this new digital era, your private keys may be secure, but are you?
