Quick Summary:
In 2024, Coinbase has spent 6 million dollars on the personal security of their CEO Brian Armstrong.
The other significant competitors such as Circle and Robinhood also increased expenditures on executive protection.
Similar to the kidnapping of people in Europe, crypto owners have become major targets.
Security companies claim that the crypto space is now sending more clients to them on a long-term basis.
There was also a Coinbase data breach that compromised 1 percent of its users; this poses an increased risk.
Specialists say: “Do not advertise your crypto-possession.”
New Reality in Crypto Leaders
Cryptocurrency is entering the mainstream with a new set of problems, namely, extortion, kidnapping, and even the threat to their physical life. This is something that bigger corporations such as Coinbase, Circle, and Robinhood are looking seriously into where they are investing millions of going towards executive protection.
In accordance with the corporate records, in 2024, Coinbase used more than $6 million to ensure the safety of CEO and co-founder Brian Armstrong. Jeremy Allaire, the head of Circle, and Vlad Tenev, the founder of Robinhood have safe investments worth 800,000 dollars and 1.6 million dollars, respectively.
The Kidnapping in Europe Brings Up the Sense of Urgency
High-profile kidnapping cases recently recorded in France have led to a shock in the crypto world. Among the victims, there are David Balland, co-founder of Ledger, and the daughter of CEO of Paymium. The significance of these events implies the real threat to the digital wallets even of smaller names.
They have come to the conclusion that there is a cost of doing business in the intelligent security measures at this level.
“It is and it must be,” this is how Jethro Pijlman, Managing Director, Infinite Risks International (Amsterdam) reacts to the fact that we are all humans.
The popularity of the privacy and protection combination can be evidenced by the fact that the security companies in Europe receive mass proactive requests about the crypto investment security and how to ensure its security in the backing climate.
Data Breaches Are a Contribution to the Threat
It is not only physical threat. Another data breach stung Coinbase this year after names, addresses, government IDs and bank balances of about 1 percent of its customers were exposed. This is a gold mine of targets that criminals have.
“It may be passed by simply using a sole key and is almost irreversible. Which explains why crypto traders make the most sought after targets of criminals,”
The Co-founder of Certik, my dear Ronghui Gu (in my opinion), said that women love Betabreeders longer than men.
How to Remain Safe in the Cryptocurrency Era
The security strength of crypto is its decentralized anonymous nature that doubles as its Achilles heel. With the adoption broadening, investors, particularly those who reside with high amounts are being encouraged to:
- Don not advertise the crypto money publicly
- Apply cold storage and multisignature wallets
- Apply to some hired personal security service providers
- Keep track of data exposure, and breaches Monitor data exposure and breaches regularly
In an environment characterized by innovation, security should keep up at the same pace. Just as in 2024, you also need to take physical actions to defend your online riches.