Coinbase security spending hits $8.7M amid crypto attack rise

Coinbase security spending hits $8.7M amid crypto attack rise

Crypto exchanges are spending more on personal security as kidnappings, home invasions, and physical attacks grow across the industry. Bloomberg reported that firms are raising security budgets after a rise in violent incidents targeting executives, investors, and event attendees. The trend is linked to criminals forcing victims to transfer digital assets under threat.

These attacks, known as “wrench attacks,” involve violence or coercion to steal private keys, passwords, or wallet access. The concern has spread from online fraud to personal safety. A recent report from crypto.news noted that France counted 41 crypto-linked kidnappings in 2026, or about one case every 2.5 days, making it a hotspot for such crimes.

Coinbase boosts CEO security

Coinbase’s latest proxy filing shows the exchange spent about $8.7 million in 2025 on CEO Brian Armstrong’s security, up from roughly $6.2 million the year before. Bloomberg reported that the company may provide personal security services, including certified protection officers, secure lodging, and residential security, when deemed necessary. Coinbase views these costs as “reasonable and necessary expenses” for the company and its stockholders.

The higher spending reflects how public crypto executives face risks beyond just cyberattacks. Exchanges must now protect data, wallets, employees, and the people most closely linked to their brands.

Gemini spends heavily on executive protection

Gemini has also raised its security spending. Its latest filing says the company entered a January 2026 services agreement with Winklevoss Capital Management for executive protection, secure transportation, and risk advisory services. The firm pays a fixed monthly rate of $400,000, plus some reimbursed expenses. The coverage includes the CEO, president, their families, and other named individuals.

This arrangement shows security is becoming a formal operating cost for crypto firms, especially when executives are publicly associated with digital assets.

Offline risks highlight need

Recent attacks underline why exchanges are changing their approach. Crypto.news reported a case where a French crypto worker fought off an armed intruder who posed as a delivery driver during a home invasion. Police later charged a suspect with attempted armed robbery.

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

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