Coinbase hack exposed sensitive data, increasing physical security demand among crypto holders.
Kidnapping attempts on crypto executives highlight growing real-world risks.
Crypto assets’ irreversible nature drives investors to adopt proactive protection measures.
The recent Coinbase hack has triggered a surge in demand for skilled security among wealthy cryptocurrency holders. According to a Bloomberg report, the breach disclosed sensitive customer information, including home addresses and account balances, leading many crypto millionaires to seek physical protection against rising threats of targeted attacks. These developments reflect growing fears around the safety of crypto assets beyond digital risks.
Increased Security Demand Following Data Exposure
Security firms report a notable rise in inquiries from crypto holders worried about their physical safety. Jethro Pijlman, managing director at Amsterdam-based Infinite Risks International, told Bloomberg his company has seen more requests for bodyguard services. Many clients now view security as a necessary business expense rather than an optional safeguard.
This increased demand began before the Coinbase hack became public knowledge but intensified afterward. The firm specializes in protection and intelligence services tailored to clients with significant crypto holdings. Investors seek these services amid concerns over kidnapping attempts and threats targeting the crypto sector.
Crypto’s Unique Vulnerability Amplifies Risks
Cryptocurrency differs from traditional assets because ownership requires only a private key for transfer. Once stolen, recovery of digital assets is nearly impossible. Ronghui Gu, co-founder of blockchain security firm CertiK, explained that criminals specifically target crypto traders due to this irreversible nature.
These fears were amplified by the Coinbase hack which exposed personal data that could have clues as to where these rich investors hide. This compromised information included the names, addresses, government ID images, transaction history of digital currency related to each account as well as the account balances. The data breach heightened security concerns and, although Coinbase said less than 1% of monthly users were affected, it reported about 14,000 US customers lost money from recent hackings at its rivals.
Kidnappings and Attacks Emphasize Physical Threats
Physical attacks on crypto executives and their families have risen alongside the hack. For example, last week, assailants attempted to kidnap the daughter and grandson of a French cryptocurrency executive linked to the Paymium exchange. Authorities stopped this attempt, but it fits a pattern of similar incidents.
In January, David Balland, co-founder of French crypto wallet company Ledger SAS, suffered a hand injury after being kidnapped with his partner. Such attacks have prompted France’s Interior Minister Bruno Retailleau to announce a priority emergency police hotline dedicated to the crypto sector. The government will also deploy elite police units to provide briefings and security checks for crypto leaders and their families.
The Coinbase data breach has brought physical safety concerns to the forefront. Hackers’ access to detailed personal information poses risks beyond digital theft. As a result, wealthy crypto holders are adopting proactive measures, including hiring bodyguards and increasing overall security awareness.
