Coinbase and Gemini Spend Millions Protecting Executives from Crypto Crime

Coinbase and Gemini increased security spending as kidnappings, home invasions, crypto crime, and “wrench attacks” continue rising worldwide.

Crypto companies are increasing security spending after several attacks targeted crypto executives and investors. According to Bloomberg, criminal groups are now using kidnappings, home invasions, and physical threats to steal digital assets. As a result, the big exchanges are investing millions of dollars to safeguard their leaders and families against crypto crime.

Crypto Firms Increase Security After Violent Attacks

In 2025, Coinbase raised the amount of money spent on CEO protection. Coinbase’s filings revealed that it paid approximately $8.7 million for security for Armstrong. This amount increased from nearly $6.2 million during 2024.

The company stated that the expenditure was for personal security and related protection services. Additionally, Coinbase indicated that it had increased its executive protection budget by almost 20% from previous years. The threats escalated, and the exchange was compelled to increase the safety of senior leaders.

In the meantime, Gemini invests heavily in executive security. Company filings revealed Gemini pays around $400,000 every month to Winklevoss Capital Management. The funds are used for executive protection, secure transportation, and risk advisory services.

The protection services cover Cameron Winklevoss, Tyler Winklevoss, and their families. The exchange reportedly spends several million dollars a year on security. Also, the spending is now greater than that of some traditional financial companies.

As crypto crimes continue to rise, exchanges and rich investors are seeking to enhance their protection. There have been several recent incidents of crypto holders being kidnapped, assaulted, and robbed with guns in their homes. Consequently, many industry companies are rapidly changing their security plans.

These attacks are commonly referred to as “wrench attacks.” In these offenses, the perpetrators employ physical violence to compel victims to make digital asset transfers directly. Since blockchain transactions occur in real time, hackers can swiftly transfer stolen assets once they have access.

Crypto Industry Adds New Safety Measures to Prevent Crime

Today, crypto companies are employing both physical and digital security measures. Many companies developed fake wallets with smaller sums of money. So, in times of peril, victims can give over smaller amounts of money rather than bigger amounts.

Large withdrawals are also secured with multi-signature security systems at some exchanges. There are a number of locations that need to be approved before funds are moved in these systems. As a result, criminals can’t easily move assets even if they gain access from one person.

A few companies also introduced withdrawal delays for big withdrawals. The waiting periods cannot be rushed. As a result, during kidnappings or extortion, law enforcement agencies might have more time to respond.

Hackers and criminal groups are also using social engineering and impersonation tactics. Some attackers target contractors or employees of crypto companies. In addition, cybercriminals will attempt to gather personal data prior to attacks.

However, public blockchain records may increase risks for wealthy crypto holders. Organized crime groups can target some executives because their large wallet balances are easily seen online. Consequently, many investors now steer clear of making their personal information public.

Many crypto firms believe security spending will continue to increase in the coming years. As digital assets gain in value around the world, companies are turning their attention to better protection. As a result, executive safety has actually come to be a significant worry in the crypto sector.

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