Kidnappings of high-profile figures in the cryptocurrency industry are causing crypto investors to worry and seek ways to protect themselves. One of the most serious recent incidents occurred on January 21, 2024, when David Balland, co-founder of cryptocurrency wallet company Ledger, and his wife were attacked by armed criminals at their home in Méreau, France. The incident sparked concerns in the crypto world, prompting many wealthy individuals to seek professional bodyguard services.

Bloody Kidnapping Targets Crypto World

Balland and his wife were forced into two separate vehicles by an organized group of kidnappers who demanded a ransom from Éric Larchevêque, another co-founder of #Ledger . To increase the pressure, they cut off one of Balland's fingers. French police mobilized more than 200 investigators and successfully rescued Balland on January 22 from a house in Châteauroux. His wife was also found tied up but not seriously injured. Ten suspects have been arrested in connection with the kidnapping, facing charges of "torture, cruelty and extortion," which could result in life in prison if convicted.

This kidnapping is not an isolated incident. Previously, a senior executive of a Canadian crypto company was kidnapped for ransom, and recently the CEO of United Healthcare was assassinated. These events have caused crypto billionaires to become increasingly concerned about their own safety.

Crypto World Rushes to Hire Bodyguards

Security companies report a surge in requests for security guards from crypto investors. Adam Healy, a former US Marine and CEO of cybersecurity firm Station 70, confirmed that the demand for personal security services in the crypto industry is increasing significantly.

The main reason why wealthy figures in this field are targeted is because of the unique nature of cryptocurrencies. Unlike traditional currencies, crypto is stored in digital wallets, protected only by a secret string of code. If a bad actor can force the owner to provide this code, they will gain control of all the assets.

“If you manage your own money, you have to accept the risks that come with it,” said an anonymous crypto industry executive. “Put a gun to someone’s head and they’ll hand over all their money.”

The Evolution of Crypto Asset Protection

To mitigate the risk, crypto organizations have adopted new security measures, such as using multi-signature wallets or splitting wallet keys into multiple pieces, storing them in different secure locations around the world. However, even these sophisticated measures cannot completely prevent kidnappings.

Misconceptions about the anonymity of crypto transactions also contribute to the industry becoming a target for criminals. “Criminals just see millions of dollars that seem untraceable, and they think this is an easy opportunity,” Healy said.

A Shift in Approaches to Personal Security

In the past, many crypto investors viewed hiring bodyguards as a symbol of wealth. John Moore, CEO of security firm Westminster Security, said that in 2013, when $BTC was on a tear, crypto billionaires often hired bodyguards to show off their power. "They wanted to show up with a big entourage and luxury cars. It was a way to show off their status."

But that approach has changed. Cryptocurrency enthusiasts now prefer more discreet security measures, such as plainclothes bodyguards, to avoid attracting unwanted attention. “The ‘Bitcoin Boys’ of old have matured. They understand that being wealthy means attracting unwanted attention,” Moore said.

Most crypto clients do not require 24/7 security, but only use the service when attending public events or traveling to dangerous locations. Security typically focuses on scouting the location in advance, coordinating with law enforcement, and ensuring the client’s safety while moving through crowds.

“Crypto people are rock stars in their world,” said Darrell M. Blocker, a former #CIA officer and now founder of security firm DMB Consulting Services. “Anyone who is interested in crypto knows the big guys.”

In high-risk situations, bodyguards may have to deploy bulletproof vehicles, provide armed escorts, and even negotiate with local criminal gangs to ensure their clients' safety. "Kidnapping is a business, and people in this business are willing to negotiate. Even criminals have their honor," Blocker said.

Risk May Increase in the Future

With the rise of kidnappings targeting the crypto industry, many experts are concerned that these incidents could spark a new wave of crime. Ryan Martin, Vice President of Crisis24 Private Strategic Group, warned that: “These kidnappings attract so much attention that they create the risk that other criminal groups will follow suit.”

While crypto investors have become more cautious, risks remain. As one crypto industry executive concluded: “If you decide to be your own bank, you have to be prepared to take all the risks that come with it.” #anhbacong