After the Coinbase hack, crypto investors turn to professional security amid rising threats and physical attacks.
Wealthy cryptocurrency investors progressively utilize professional security services in response to the Coinbase hack. Hackers accessed client home addresses and account balances due to the breach. The crypto industry has been the target of a concerning increase in kidnappings, which has raised security concerns. This encompasses the attempted abduction of the daughter and grandson of a French cryptocurrency executive last week.
The demand for protection has increased in response to the Coinbase breach
Even before the public disclosure of the Coinbase hack, professional security providers were experiencing increased demand from cryptocurrency investors seeking protection services. According to Jethro Pijlman, managing director of Infinite Risks International, an Amsterdam-based company, there has been a noticeable increase in client inquiries about their crypto holdings.
“We have received an increase in the number of inquiries, long-term clients, and proactive requests from crypto investors who wish to avoid being caught off guard,” Pijlman stated. His organization is dedicated to providing physical security and intelligence services to cryptocurrency owners who are increasingly concerned about industry-related threats and kidnappings.
After the hack, the security expert has noticed that affluent crypto investors are now employing a more proactive approach. Additionally, they have begun to regard security as an indispensable business expense rather than an optional precaution.
This increase in demand following the Coinbase hack indicates a growing recognition of the vulnerabilities that crypto wealth holders are confronted with. In contrast to conventional financial assets, cryptocurrency can be transmitted using only a private key. This renders it virtually impossible to retrieve once it has been stolen.
This concern is confirmed by Ronghui Gu, an associate professor at Columbia University and co-founder of the blockchain security firm CertiK. “Cryptocurrency is exceedingly challenging to recover and can be transferred with only a private key.” This renders cryptocurrency traders ideal targets for criminals.
Recent crypto kidnappings have underscored physical security hazards
Amidst the Coinbase hack news, a succession of targeted attacks against crypto executives and their families has also been reported. Last week, intruders attempted to abduct the grandson and daughter of a French cryptocurrency entrepreneur. Paymium, a cryptocurrency exchange in France, is managed by the individual in question. Although this kidnapping attempt was unsuccessful, it is indicative of an increasing number of comparable incidents.
In January, David Balland, a co-founder of the French crypto wallet company Ledger SAS, sustained hand injuries. This transpired after his abduction with his companion. Bruno Retailleau, the Interior Minister of France, has pledged to establish a priority emergency police number exclusively designated for the crypto industry due to the increasing frequency of these assaults.
Furthermore, cryptocurrency CEOs and their families will receive tailored security assessments and briefings from elite French police units.
The Coinbase hack has further exacerbated these concerns, as hackers were able to access sensitive information that could be used to identify and locate customers with substantial holdings. Although Coinbase claimed that the breach affected less than 1% of its monthly transacting users, the compromised data encompassed names, addresses, government ID images, transaction histories, and account balances. Botha of Sequoia Capital was also affected by the breach.
