- The same public ledger that enables transparency in cryptocurrencies often acts as a double-edged sword for some of its whales, which are identified and attacked by hackers, scammers, and other criminal elements.
- Bloomberg reports a 75% increase in recorded physical attacks (also known as crypto key attacks) against cryptocurrency holders year over year in 2025.
- Whales, cryptocurrency-related companies, and exchanges have responded by upping the ante on security protocols, increasing bodyguards, and even employing preventative measures.
Both cryptocurrency executives and whales are increasingly targeted by a combination 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 world of cryptocurrencies is putting some coin collectors at risk of physical harm and even kidnapping.
But many are also being exposed for their lavish lifestyles, their presence at cryptocurrency conferences, or, in some cases, leaking exchange data.
A high ROI approach for criminals
Unlike most of their targets, criminals typically find cryptocurrency executives and enthusiasts easy prey, especially when they flaunt a lavish lifestyle or talk a lot at conferences, cryptocurrency gatherings, or even amass their holdings online.
Given the unrecoverable nature of many of their holdings and the liquidity they possess, as well as the ability to move them quickly across platforms, physical attacks related to cryptocurrencies are on the rise, a meteoric 75% according to a Bloomberg report.
“The logic from the adversarial perspective of what bad actors see is: This is low risk, high ROI,” said Adam Healy, CEO of Station70, a US-based security firm focused on digital asset protection, while speaking to Bloomberg, noting that if the funds are laundered correctly, payday is easy.
Some are even playing the long game, with a much more sophisticated attack on Drift, wiping an estimated $280 million from the derivatives exchange, in which the hackers posed as a trading company and even met with staff at several conferences.
Security is reinforced among other measures
As crypto key attacks become increasingly common, crypto exchanges have responded by doubling down on the protection of their executives. Cryptocurrency exchange Gemini, for example, spent $5 million on security for its co-founders, Cameron and Tyler Winklevoss (aka the Winklevoss twins).
Safety protocols are being established for people in similar situations to provide greater protection. Phil Ariss, head of UK Public Sector Relations at TRM, said: “The big exchanges and regulated custodians are increasingly converging on something that looks a lot like big bank practice for a small group of key staff – think executive protection for a handful of individuals, safe travel protocols, reinforced offices and internal policies about residential addresses and children's schools that are not publicly visible.”
Private cryptocurrency holders are also employing bodyguards, attending conferences focused on physical security, and even looking to invest in decoy wallets and delay locks, and completely eliminate their cold storage wallets from their daily routines.
Even with a reported 75% year-on-year increase, the problem could be underestimated, with many quietly paying ransoms, not reporting losses, or simply refusing to involve authorities in what can often be a crime involving unrecoverable values or additional perceived attention, which can be seen as painting a target on their back.
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