Binance's $6.3 bil. hack: How crypto insurance works
Hackers stole $6.3 billion from Binance in the world's biggest crypto heist, putting a spotlight on how cryptocurrency exchanges insure their digital assets against theft and cyberattacks. But insurance protection is far from uniform. Coverage depends on how assets are stored, how hackers gain access and the specific terms of the policy. Limited regulation and volatile crypto prices have long…
The world's largest ever crypto heist saw $6.3 billion stolen from Binance, highlighting the need for cryptocurrency exchanges to protect their digital assets. However, insurance coverage varies greatly depending on storage methods, hacking techniques, and policy terms. Insurers have been hesitant to invest due to limited regulation and volatile crypto prices, despite the rising demand for protection against digital asset theft and claims against executives.
Digital asset insurance covers a range of policies to shield cryptocurrency exchanges, custodians, and other relevant companies from losses caused by digital asset theft, cyberattacks, technological failures, and other business risks. Unlike traditional insurance, these policies are offered primarily by specialized insurers in the Lloyd's market and Bermuda.
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Also reported by 3 other outlets
- Binance's $6.3 bil. hack: How crypto insurance works koreatimes.co.kr
- Binance’s $6.3 Billion Hack: How Crypto Insurance Works insurancejournal.com
- Alphabet loses $428B after stock plummets; Binance's colossal $6.3B hack cbsnews.com
