Crypto Industry Tightens Security as Kidnappings, Home Invasions Fuel Physical Threats

Physical crimes including kidnappings, robberies and home invasions are rising sharply in the crypto industry, driving a broader push to bolster security across the sector.

Bloomberg reported on May 19 that crimes targeting crypto holders have been increasing recently, particularly in the US and Europe. Exchanges, industry figures and large investors are strengthening personal protection and asset-security systems in response.

At the Bitcoin 2026 event in Las Vegas last month, many key speakers were accompanied by personal bodyguards, Bloomberg reported. The conference also featured a security session on how to protect crypto assets during a home invasion.

According to on-chain security firm CertiK, physical attacks targeting crypto holders rose 75% from a year earlier to 72 cases last year. Confirmed losses totaled about $41 million.

Bloomberg said the public nature of blockchain networks and the traceability of transactions are helping criminals identify targets. Leaked exchange data and on-chain records can be used to track the size of an individual's holdings.

The trend is prompting wider use of security measures including distributing assets across multiple venues, adding withdrawal delays and using decoy wallets. Some large investors are also splitting holdings among several institutions and requiring physical signatures and long waiting periods for withdrawals.

Security costs at major exchanges are also rising. Coinbase, the largest US crypto exchange, spent about $7.6 million last year on personal security for Chief Executive Officer Brian Armstrong, Bloomberg reported. Gemini also spends several million dollars a year protecting Cameron and Tyler Winklevoss.