As incidents of kidnapping, home invasions, and "wrench attacks" increase in the cryptocurrency industry, exchanges and their executives are ramping up spending on personal security. This concern extends beyond cyber fraud, with personal safety issues becoming increasingly prominent. In the crypto space, a "wrench attack" refers to criminals using threats or violence to force victims to hand over private keys, passwords, or wallet access.
According to a report by Bloomberg, Coinbase disclosed in its latest proxy filing that the exchange spent approximately $8.7 million on security and related protective measures for CEO Brian Armstrong in 2025, up from $6.2 million in 2024. This data indicates that the risks faced by public cryptocurrency executives are no longer limited to cyberattacks; exchanges must protect data, wallets, and employees while also paying attention to personal safety closely tied to their brand.
In terms of security expenditures, Gemini incurs a fixed monthly cost of $400,000, along with certain reimbursable expenses. This security service covers the company's CEO, president, and their family members, as well as other individuals that Gemini may designate from time to time. This arrangement reflects that security is gradually becoming a formal operating cost in crypto companies and highlights the risks faced by executives closely connected to digital assets.
As security risks in crypto gradually shift offline, the industry's focus on personal safety continues to rise.