- The same public ledger that enables transparency in cryptography often acts as a double-edged sword for some of its whales, who are identified and targeted by hackers, scammers, and other criminal elements.
- Bloomberg reports a 75% increase in recorded physical attacks (also known as cryptographic key attacks) against cryptocurrency holders year-over-year in 2025.
- Whales, crypto-related companies, and exchanges have responded by upping the ante on security protocols, increasing the number of bodyguards, and even resorting to preventative measures.
Cryptocurrency executives and whales are increasingly being targeted by a mix of criminal elements around the world, even as security continues to be tightened to protect not-so-anonymous cryptocurrency owners.
The transparency introduced into the crypto world puts some coin collectors at risk of physical harm or even kidnapping.
But many are also getting noticed for their lavish lifestyles, attending crypto conferences or, in some cases, leaking exchange data.
A high ROI approach for criminals
Unlike most of their targets, criminals typically find crypto executives and enthusiasts easy pickings, especially when they flaunt a lavish lifestyle or speak loudly at crypto conferences, meetups, or even amass their holdings online.
Given the irrecoverable nature of many of their assets and the liquidity they have, in addition to the ability to quickly move them from one platform to another, physical attacks linked to cryptocurrencies are on the rise, reaching a staggering 75% according to a Bloomberg report.
“The logic of the conflicting perspective of what bad actors see is: It’s low risk and high ROI,” said Adam Healy, CEO of Station70, a US-based security company focused on protecting digital assets, while speaking to Bloomberg, emphasizing that if funds are laundered properly, it allows for an easy payday.
Some are even playing the long game, with a much more sophisticated attack on Drift, wiping around $280 million from the derivatives exchange, in which the hackers posed as a trading firm and even met with staff at various conferences.
Enhanced security and other measures
As cryptographic key attacks become more common, crypto exchanges have responded by doubling down on protection for their executives. Crypto exchange Gemini, for example, spent $5 million on security for its co-founders, Cameron and Tyler Winklevoss (also known as the Winklevoss twins).
Safety protocols for people in similar situations are being established to provide greater protection. TRM’s Phil Ariss, UK public sector relations director, said: “Large regulated exchanges and custodians are increasingly converging on something that very closely resembles the practices of big banks for a small group of key personnel – think executive protection for a handful of individuals, secure travel protocols, hardened offices and internal policies around children’s home addresses and schools that are not publicly visible.
Private cryptocurrency holders also employ bodyguards, attend conferences focused on physical security, and even seek to invest in decoy wallets and timed locks, and completely remove their cold storage wallets from their daily routine.
Even with a recorded increase of 75% year-on-year, the problem may be underreported as many pay ransoms silently, underestimate losses, or simply refuse to involve authorities in what can often be a crime involving unrecoverable titles or perceived extra attention, which can be seen as a target on the back.
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