Crypto wrench attacks push Coinbase security bill to $8.7M

Crypto exchanges and executives are spending more on personal security as kidnappings, home invasions, and “wrench attacks” become a growing risk across the industry.

Bloomberg reported that crypto firms are raising security spending after a rise in violent attacks targeting executives, investors, and event attendees. The report linked the trend to kidnappings, home invasions, and physical threats aimed at forcing victims to transfer digital assets.

The concern has spread from online fraud to personal safety. In crypto, a “wrench attack” refers to an attack where criminals use threats or violence to force someone to hand over private keys, passwords, or access to wallets.

Related reports show the threat is no longer limited to wealthy public figures. crypto.news reported that France counted 41 crypto-linked kidnappings in 2026, equal to about one case every 2.5 days. The same report said France had become one of Europe’s main hotspots for crypto ransom attacks.

Coinbase security bill rises for Brian Armstrong

Coinbase’s latest proxy filing showed the exchange spent about $8.7 million in 2025 on CEO Brian Armstrong’s security and related protection measures, according to Bloomberg. That was up from about $6.2 million in 2024.

Coinbase’s prior proxy said the company may provide personal security services, including certified protection officers, secure lodging, and residential security, when its security team deems them needed. The filing said Coinbase views these costs as “reasonable and necessary expenses” for the company and stockholders.

The higher figure shows how public crypto executives now face risks that go beyond cyberattacks. Exchanges must protect data, wallets, employees, and, in some cases, the people most closely tied to their brands.

Gemini pays $400,000 per month for protection

Gemini has also raised executive security spending. Its latest filing said the company entered a January 2026 services agreement with Winklevoss Capital Management for executive protection, secure transportation, and risk advisory services.

The filing said Gemini pays a fixed monthly rate of $400,000, plus certain reimbursed expenses. The services cover the company’s CEO, president, their family members, and other individuals Gemini may name from time to time.

The arrangement shows how security is becoming a formal operating cost for crypto firms. It also reflects the exposure of executives whose names, wealth, and public profiles are closely tied to digital assets.

Crypto security risks move offline

Recent attacks show why exchanges are changing their approach. crypto.news reported that a French crypto worker fought off an armed intruder posing as a delivery driver during a home invasion. Police later arrested a suspect and charged him with attempted armed robbery.

Earlier market updates also covered a trader who offered a 10% bounty after claiming a violent $24 million crypto robbery. That case was described as part of the wider rise in wrench attacks, where criminals use force instead of code to steal crypto.

Source