For anyone who’s been in crypto long enough, it’s well-known that the risks don't stop at hacks or phishing attacks. Threats facing crypto founders and executives have long extended beyond digital vulnerabilities, but physical violence is becoming increasingly common, more visible, and harder to ignore.

A string of recent high-profile cases, including kidnappings involving Ledger co-founder David Balland and his wife in France and the abduction of an Italian crypto entrepreneur in New York City, have publicly highlighted this reality. That’s why it’s never been more important for crypto veterans to understand the tools at their disposal to protect themselves, their loved ones, their assets, and their business.

Increasing Physical Threats

Recent cases of kidnapping and ransom are in the spotlight, but they're part of an expanding pattern that goes back years. Since 2019, there have been 59 cases of crypto kidnappings across Europe and 48 in North America. Incidents in 2025 have already topped 2024. 

“Crypto” is practically synonymous with “digital.” But the custody of cryptocurrency, involving the safeguarding of physical keys and wallets, creates tangible, real-world vulnerabilities similar to those associated with holding assets like cash or gold. These situations are less like hacks and more like modern-day bank robberies.

As crypto founders become higher profile (and higher net worth, with bitcoin value up over 50% since May 2024), their vulnerability to physical threats of violence is growing accordingly. 

This trend isn't entirely new, but its increasing frequency and visibility underscore the urgent need for founders to reassess how they manage risk.

The Role of Kidnap & Ransom Insurance

Crypto founders face unique risks in that their wealth is often public, stored in irreversible assets, and held in decentralized wallets. Most crypto businesses and founders rely on a suite of core insurance products:

• Directors & Officers (D&O): Covers legal liabilities for executives.
  
  
• Cyber: Addresses losses from data breaches and digital attacks.
  
  
• Crime: Protects against internal fraud and employee dishonesty.

These policies are essential, but they are increasingly not enough. They aren’t built to address physical violence, extortion, or forced access to crypto assets under threat of harm. 

Kidnap and Ransom (K&R) insurance has long been used by multinational firms operating in volatile regions. Now it’s becoming critical for high-profile individuals in the crypto space, where global conference travel and active social media presences leave potential targets exposed.

“Startups typically reach out about this coverage when traveling to riskier destinations,” says Travis Hedge, co-founder and CRO of Vouch. “But crypto founders need this protection 24/7.”

K&R insurance is purpose-built to address these threats. It typically covers:

• Ransom payments (including cryptocurrency demands)
  
  
• Crisis response and negotiation support
  
  
• Medical and psychological care
  
  
• Legal costs
  
  
• Lost income
  
  
• Crisis management
  
  
• Travel and relocation costs
  
  

K&R policies designed for crypto can manage ransom demands in digital currencies accounting for legal, compliance, and technical complexity. These policies ensure ransom transactions are securely handled, documented, and executed in accordance with law enforcement and financial regulations.

"Crypto founders need this protection 24/7."

Prevention is Still the Best Defense

While K&R coverage is critical, it’s not a substitute for proactive security. Crypto executives should consider:

• Risk assessments: Identify vulnerabilities across digital and physical environments.
  
  
• Security protocols: Limit public exposure, vary routines, and secure physical premises.
  
  
• Training: Ensure teams know how to recognize and respond to potential threats.
  
  
• Insurance reviews: Adjust your coverage as your exposure and business evolve.
  
  

A Higher Standard for Risk Management

The crypto industry’s rise has brought unprecedented innovation and new risks. Traditional insurance protections aren’t enough. K&R insurance offers targeted protection, crisis management resources, and the peace of mind founders need to operate confidently.

As crypto’s value and visibility continue to grow, so do the need for a comprehensive security strategy that includes digital safeguards, physical security, and the right insurance protections.

Not sure if you have the right protection for your crypto company? Vouch’s Web3 experts can ensure you’re not exposed.