Crypto companies are spending millions more on executive protection as physical attacks against industry figures continue to grow worldwide.
According to a new report from Bloomberg, rising threats including kidnappings, home invasions, and so-called “wrench attacks” are forcing crypto exchanges and wealthy investors to rethink personal security. The trend marks a shift from purely digital threats toward real-world violence targeting people connected to large cryptocurrency holdings.
In the crypto industry, a wrench attack refers to criminals using intimidation, kidnapping, or physical force to obtain wallet passwords, private keys, or access to digital assets.
Recent incidents suggest the danger is escalating quickly.
Earlier reports from crypto.news revealed that France alone recorded 41 crypto-related kidnappings in 2026 — roughly one case every two and a half days. The country has increasingly become one of Europe’s biggest hotspots for crypto ransom crimes and violent theft targeting digital asset holders.
As risks increase, major crypto firms are dramatically expanding their security budgets.
Coinbase disclosed in its latest proxy filing that the company spent approximately $8.7 million during 2025 on security and protection measures for CEO Brian Armstrong. That figure rose sharply from roughly $6.2 million spent in 2024.
The filing stated that Coinbase may provide services such as certified security personnel, secure accommodations, transportation protection, and residential security whenever the company’s internal security team considers them necessary.
Coinbase described the costs as “reasonable and necessary expenses” meant to protect both the company and its shareholders.
The increase highlights how crypto executives now face threats extending far beyond hacking or online fraud. Publicly known founders and exchange leaders are increasingly viewed as high-value targets because of their visibility and ties to large crypto fortunes.
Gemini has also significantly increased protection spending.
According to recent filings, Gemini entered a January 2026 agreement with Winklevoss Capital Management covering executive protection, secure transportation, and risk management services.
The company reportedly pays a fixed monthly fee of $400,000, plus additional reimbursed expenses. The arrangement protects Gemini executives, their families, and other designated individuals connected to the company.
The growing security costs reflect a broader reality facing the crypto industry: as digital assets become more valuable, criminals are increasingly targeting people instead of technology.
Several recent cases demonstrate the shift toward offline attacks.
One crypto.news report described a French crypto employee fighting off an armed suspect disguised as a delivery driver during a home invasion attempt. Authorities later arrested a suspect and charged him with attempted armed robbery.
Another widely discussed incident involved a trader who offered a 10% bounty after claiming he was the victim of a violent $24 million crypto robbery.
These cases have intensified concerns surrounding wrench attacks, where attackers bypass complex cybersecurity systems entirely by threatening victims directly.
As a result, security is becoming a major operational expense for crypto firms, especially for companies whose executives maintain large public profiles and substantial digital wealth.
Also read : Strategy Buys 24,869 BTC as Bitcoin Drops Below $77K
