Key Takeaways
- Insurance firms are developing kidnap and ransom coverage for Bitcoin investors.
- Recent violent incidents include kidnapping attempts in France and robbery plots in South Korea.
- Demand for personal security and protection services is rising among Bitcoin executives.
A growing wave of kidnappings and violent attacks on Bitcoin investors is prompting insurance companies to develop specialized kidnap and ransom (K&R) coverage tailored to the digital asset industry.
Insurance industry response
At least three firms are working on new policies specifically for Bitcoin holders, according to an NBC News report.
Rebecca Rubenfeld, COO of AnchorWatch, said security concerns dominated this week’s Bitcoin Conference in Las Vegas.
Rubenfeld noted:
They’re tense.
AnchorWatch plans to launch K&R coverage by fall.
Heightened alarm in the crypto world
Kidnap risks have long existed for crypto holders, but recent cases have heightened alarm.
In Manhattan, an Italian tourist was tortured over access to digital assets, and in France, executives have faced abduction attempts.
The decentralized nature of Bitcoin—where accounts are controlled by individuals and transactions are irreversible—makes holders especially vulnerable if credentials are forcibly taken.
Interest in K&R insurance
K&R insurance, commonly used by corporate executives, is now attracting interest in Bitcoin circles.
Andrew Kurt of Hylant Capital said claims are usually infrequent but severe:
What has occurred is probably not going to be a large frequency issue, but more of a severity issue.
Factors influencing insurance pricing
Joseph Ziolkowski, CEO of Relm Insurance, said pricing depends on factors like security infrastructure.
He explained:
If someone has 24/7 personal security detail, that obviously would be a credit and would affect premium.
Rising demand for protection
A rise in Bitcoin-related crime has accelerated demand for protection.
South Korean authorities recently arrested a Russian national for attempting to rob $730,000 during a staged crypto deal.
Meanwhile, private security firms report growing demand from prominent Bitcoin investors seeking bodyguards.
