The shocking kidnapping of Ledger co-founder David Balland is the latest reminder of the security risks facing crypto investors and entrepreneurs.
He and his wife were abducted at gunpoint in France last week, with their attackers demanding a €10 million ransom to be paid in digital assets.
Balland’s finger was cut off during his terrifying ordeal — and the couple, who were being held in separate locations, were later freed by police.
This is the latest in a long line of incidents targeting those who have made their millions by investing and innovating in Bitcoin.
In another case, the father of a crypto influencer was kidnapped, tied up in the back of a car boot, and doused in petrol.
The founder of a Canadian exchange was abducted and held until a $1 million ransom was paid.
And in Ukraine, a 29-year-old foreigner was killed after being taken against his will by assailants who stole 3 BTC from his wallet.
The uptick in violent crime reflects crypto’s raging bull market, which has only intensified since Donald Trump won the election.
Criminals can safely assume that early adopters are now sitting on a fortune given how Bitcoin’s price has multiplied many times over in recent years — with the perceived anonymity of crypto transactions breeding confidence that ransoms can be paid without a trace.
But what exactly are the risks facing high-net-worth crypto investors, and the steps they can take to keep themselves safe? Cryptonews has spoken to two security experts who make this their life’s work.
David Balland‘Security is a New Asset Class’
Kate Bright is the CEO and founder of UMBRA International, and has a simple message: risk doesn’t know how you made your money.
“The perception of wealth elevates all of our clients’ risk profiles — whether they are well-known in their industry or more widely. The primary risks for high-net-worth crypto investors are the same as anyone who invests in any other asset class and wants to have a private life.”
She told us that wealth brings exposure to risks in a multitude of ways — physically, digitally, reputationally, and from an emotional security perspective, but “proactive measures” can be taken across all four pillars.
“Security is an asset class. We talk about this sort of security as an investment. You should be investing in your security. So UMBRA as a service provides clients — single family offices, private clients — with the ability to understand where and how they should be investing in their security, and to maximize the return on their investment starts with a proactive approach, a bit like portfolio management.”
Some of these measures can include assessing for vulnerabilities across an investor’s property portfolio, performing background checks into members of their staff, investigating their digital footprint, and testing to see whether their IT systems are robust.
There are key questions when it comes to emotional security, too: do you feel safe 24/7, and are you concerned about your children’s safety?
“Anyone, including crypto investors, should be thinking about proactive ways they can stay safe — holistically though, and see it as a strategy. Your physical, digital, reputation and emotional levers; how safe you feel is a reflection of how emotionally resilient you are at any given moment. 100% of our clients aren’t necessarily worried about themselves, but more worried about their younger generations.”
David Webb is the CEO of Valkyrie, a British security and investigations company that specializes in safeguarding people, assets and reputations.
He told Cryptonews this recent kidnapping should serve as a wake-up call to crypto investors — given how the decentralized nature of digital assets means funds can be laundered internationally with little traceability.
“Balland’s case involved meticulous planning by criminals, who used surveillance and lured him into a vulnerable situation. This incident highlights the increasingly sophisticated tactics employed by threat actors and underscores the global nature of these risks.”
Webb explained that such kidnappings can have widespread consequences — including physical injury, financial losses, long-term psychological trauma, reputational damage and a lingering sense of insecurity.
“Criminals targeting crypto investors are often financially motivated, but their methods are constantly evolving. Organized crime networks exploit cryptocurrency’s borderless nature to launder funds and obscure transactions through tools like crypto mixers and tumblers, complicating recovery efforts. Sophisticated operations, like the Balland case, often involve extensive surveillance, social engineering, and sometimes insider collusion.”
While kidnappings and physical attacks remain relatively rare, Webb warned that special attention needs to be paid to digital threats.
“Hackers frequently target crypto wallets, exchanges, and platforms, using phishing schemes to impersonate legitimate services and steal login credentials. They also employ social engineering tactics to pose as trusted individuals, often relying on publicly available information, such as social media posts or corporate records, to enhance their credibility. Additionally, emerging technologies such as AI-driven impersonation and deepfakes pose new risks, enabling attackers to bypass traditional authentication methods or lure victims into traps.”
There’s also a risk of hybrid attacks, where criminals combine physical surveillance with digital reconnaissance to identify vulnerabilities in their targets.
“Physical threats, as demonstrated by the Balland case, include kidnappings, muggings, and extortion. Some criminals may resort to virtual kidnapping, where they falsely claim to have abducted a person or their loved one, using fear and urgency to demand ransoms, often in cryptocurrency. These methods frequently involve detailed research to identify suitable targets and the use of surveillance to track movements and behaviours.”
Staying Safe
While both Kate Bright and David Webb primarily serve high-net-worth individuals, the security precautions they recommend can be embraced by all crypto investors — irrespective of their wallet balance.
Webb says it’s crucial to be discreet when talking about your wealth or investments — and to avoid oversharing on social media.
“Even seemingly harmless updates can provide criminals with critical information.”
He went on to recommend that investors rely on multisignature and hardware wallets stored in secure, undisclosed locations — and to always be wary of phishing scams, fake apps and SIM-swap attacks. Carefully vetting those who have access to your home and office matters too, along with meticulous planning when traveling internationally.
Valkyrie often encourages its clients to consider escalating security during high-risk situations — such as public appearances or large transactions — through measures including close protection and specialist drivers. Ethical hackers can simulate attacks and test the resilience of a millionaire’s infrastructure too, with Webb saying it’s crucial to prepare for crisis scenarios and know “how to act calmly and decisively under pressure.”
“Security is not a one-size-fits-all solution; it must be tailored to each individual’s unique circumstances, lifestyle, and risk profile. By adopting a proactive, layered approach — blending physical, cyber, and operational measures — crypto investors can stay ahead of emerging threats, reduce their exposure, and safeguard both their assets and wellbeing. Ultimately, effective security isn’t just about mitigating risk; it’s about empowering individuals to navigate the crypto space with confidence, knowing the right measures are in place to protect what matters most.”
Both experts agree that continued vigilance is vital, and preparedness is a necessity as technology advances and the tactics used by criminals evolve in response. As Bright says:
“I think the best value investment you can make in your digital and reputational security is an online digital audit regularly to see how you’re perceived, whether there are any vulnerabilities, and to address those in short order. I think if you’re physically, mentally and cognitively looking after your risk perception, you will be more resilient. We’ve got data to back up that statement. The more emotionally resilient, emotionally secure you are, the more you will perceive risk in the right way, be proportionate about it, and use some sense of situational awareness — whether that’s on the street, traveling or engaging with individuals online. Whether you have privacy online or not, doesn’t matter, it’s an equal playing field now because wealth at any level increases exposure.”
And it’s that situational awareness that can be crucial for everyday crypto investors, too. In the U.K. alone, recent incidents have included pickpockets targeting a man in a pub and stealing his phone. It’s believed the attackers had seen him type the PIN to unlock his Crypto.com account.
Other victims have been physically forced to log into exchange apps using Face ID against their will — with thousands of pounds worth of crypto then drained from their accounts in a matter of seconds.
Consumers are often left with little in the way of safeguards when such an attack happens — especially considering that the police may lack the time and technical knowhow to perform the on-chain analytics needed to track what happened to their stolen coins.
One Bitcoiner who has been banging the drum about operations security (OPSEC) for years is Jameson Lopp, the co-founder of Casa.
He’s meticulously logged physical attacks against Bitcoiners since 2014, and just some of these incidents have included:
A firefighter being kidnapped, robbed, and stabbed A crypto executive being abducted at a car wash A man who was tortured for three hours by attackers attempting to steal his Bitcoin A blogger who boasted about his crypto wealth being beaten A man losing $87,000 in BTC after being drugged by a woman he met on a dating appLopp says social media posts about crypto — and discussing it in public places — attracts unnecessary attention, and could lead to risks compounding in the future, writing:
“It is common for thieves to track victims for months, sometimes years, in preparation for the opportune time, so it’s best to take a long-term approach to your security.”
Other practical tips he provided include:
Don’t wear Bitcoin-branded clothing Avoid wandering around alone at night Post holiday pictures once you’ve returned home Turn off real-time location tracking in exercise appsIt may not be the most glamorous of topics, but investing in simple security measures can pay big dividends.
The post Experts Reveal How to Stay Safe as Crypto Kidnappings Rise appeared first on Cryptonews.
