The rise of violent crypto-related crimes is forcing major digital asset companies to spend millions on executive protection and personal security. As kidnappings, home invasions, and so-called “wrench attacks” increase worldwide, firms like Coinbase and Gemini are significantly expanding their security budgets.
According to recent reports, crypto companies are no longer focused only on cybersecurity threats. Physical attacks targeting executives, investors, and even family members have become a growing concern across the industry.
Coinbase spends $8.7 million protecting Brian Armstrong
Coinbase disclosed in its latest proxy filing that the company spent around $8.7 million in 2025 on security and protection costs related to CEO Brian Armstrong. The figure marks a sharp increase from roughly $6.2 million spent in 2024.
The company stated that these costs include:
- Certified protection officers
- Residential security
- Secure transportation and lodging
- Additional safety measures when security risks increase
Coinbase described the expenses as necessary for protecting both the company and its shareholders, especially given the public visibility of crypto executives.
What are crypto wrench attacks?
In the cryptocurrency industry, a “wrench attack” refers to a situation where criminals use physical threats, intimidation, or violence to force victims to hand over:
- Wallet access
- Private keys
- Passwords
- Seed phrases
Unlike traditional cyberattacks, wrench attacks happen in the real world. Criminals often target people believed to hold large crypto assets or those publicly connected to the industry.
The term highlights how digital wealth can create physical security risks when ownership becomes publicly known.
France becomes a hotspot for crypto kidnappings
Recent reports show that France has become one of the main centers for crypto-related ransom attacks in Europe. Reports cited 41 crypto-linked kidnappings in 2026 alone, averaging roughly one case every two and a half days.
Some recent incidents include:
- Armed home invasions
- Fake delivery-driver attacks
- Physical assaults targeting crypto traders and workers
- Forced wallet transfers under threat
The trend suggests that criminals are increasingly moving away from technical hacks and instead targeting individuals directly.
Gemini increases executive protection spending
Gemini has also expanded its security operations. The exchange revealed it entered a protection services agreement with Winklevoss Capital Management in January 2026.
Under the arrangement, Gemini reportedly pays around $400,000 per month for:
- Executive protection
- Secure transportation
- Risk advisory services
The coverage reportedly extends to company leadership, family members, and other designated individuals connected to the firm.
Crypto security risks are changing
For years, crypto companies focused heavily on defending against online threats such as exchange hacks and phishing scams. But the recent wave of violent attacks shows the industry now faces a different type of danger.
Public visibility, social media exposure, and transparent blockchain wealth tracking can make high-profile crypto holders attractive targets for organized criminals.
As a result, physical security is quickly becoming a standard operational cost for major crypto businesses.
Growing concern across the crypto industry
The increase in executive protection spending reflects a broader shift happening across the digital asset sector. Companies are now investing not only in cybersecurity infrastructure but also in:
- Personal protection teams
- Secure residences
- Travel security
- Threat intelligence
- Family safety measures
The growing number of wrench attacks highlights how crypto adoption is creating new real-world risks that extend far beyond the internet.
