A wave of violent attacks against cryptocurrency holders pushes insurers to develop new protections aimed at a growing physical threat: abduction for crypto.
At least three companies specializing in cryptographic insurance and security now prepare kidnapping and ransom policies (K&R) for digital asset investors, according to to a recent report by NBC News.
Rebecca Rubenfeld, chief of Anchorwatch, said that fear of violence was a dominant subject at this week’s Bitcoin conference in Las Vegas. “They are tense,” said Rubenfeld. His company plans to launch K&R coverage in the fall.
Physical attacks against crypto holders are not new, with documented cases for more than a decade. But recent incidents, including the prolonged torture of an Italian tourist in Manhattan and the kidnappings of crypto leaders in France, have intensified concerns.
The decentralized nature of cryptocurrencies makes cryptography leaders of attractive targets. The accounts are controlled by individuals, the transactions are irreversible and the assets can be bleached if the criminals extract access to access.
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Crypto wealth adopts K&R insurance
Cryptographic wealth turns to traditional K&R insurance, which is common for business leaders. Andrew Kurt, vice-president of the executive risk at Hylant Capital, noted that K&R was historically very profitable for insurers because of its low frequency of complaint but a strong severity.
“I think what happened will probably not be an important frequency problem, but more a problem of severity here and there,” Kurt said.
The CEO of RELM Insurance, Joseph Ziolkowski, said that his company finalized its K&R offer, but the prices are complex, requiring detailed assessments of the physical and cyber and cyber defense.
“If someone has personal security details 24/7 traveling with him at any time, it would obviously be a credit and would affect the premium,” he said.
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Pushing of cryptographic crime
On May 27, the South Korean authorities revealed that they had arrested a Russian national accused of a qualified flight attempt during a false crypto agreement in Seoul. The suspect would have attracted Korean investors to a hotel, where they tried to steal 1 billion won (about $ 730,000) in cash.
The incident occurred in the midst of a recent increase in violent crimes linked to the crypto, including cases of kidnapping and ransom.
On May 13, the family of Pierre Noizat, co -founder and CEO of French Crypto Exchange Paymium, was targeted in an attempted removal.
In response, managers and investors in the cryptographic industry are looking for more and more personal security services. On May 18, the private company Infinite Risks International reported an increase in bodyguards and protective contracts against high -level figures in cryptographic space.
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