Insurers eye a quick buck from crypto-kidnapping fears

Insurance companies are eyeing an opportunity to respond to the latest string of crypto-kidnapping cases with new policies.

Criminals have been going rogue with a series of high-profile, violent attacks targeting crypto owners or their families.

While a 37-year-old cryptocurrency investor was accused of violently kidnapping a business partner in Manhattan's upscale Soho neighborhood for three weeks, 25 people in Paris will be brought to court for attempting to kidnap the daughter of a wealthy crypto businessman.

Wild story out of NYC: A 37-year-old crypto investor, John Woeltz, has been arrested for allegedly kidnapping and torturing a 28-year-old Italian man for three weeks inside a $30K/month Manhattan townhouse. The victim escaped Friday morning and ran to a traffic agent for help.… pic.twitter.com/ZZdi9CxEmq

undefined Lauren Conlin (@conlin_lauren) May 24, 2025

Now, at least three companies offering insurance and security services tailored for cryptocurrency holders and companies are developing new kidnap and ransom (K&R) policies, they told NBC News.

Rebecca Rubenfeld, the chief operating officer of AnchorWatch, which is looking to start offering kidnapping and ransom protection by this fall, said:

“They’re tense. I’m not saying that because I’m trying to sell insurance, but overall, the mood is a very good environment for me.”

Several traditional insurers who offer kidnapping and ransom insurance also sell custom policies for crypto holders. According to Andrew Kurt, the vice president of executive risk at the insurance firm Hylant Capital, this is not surprising considering how rarely those kidnapping cases actually take place.

“Historically, K&R has been a wildly profitable line of business for insurance companies, even though the premiums are very, very small,” Kurt told NBC News. “The losses are few and far between.”

The Binance report discloses that Europe is the hardest-hit region when it comes to crypto-kidnapping, with 59 cases over the past six years. North America comes next with 48, while Asia has 62 cases, the highest overall number.

The surge in crypto-kidnapping cases coincides with the recent price surge of Bitcoin. This is likely because the coin offers criminals a unique opportunity to avoid traditional law enforcement, meaning it’s much easier to launder.