Binance's US$6.3b heist set to trigger tougher insurer scrutiny
LAST week’s US$6.3 billion Binance heist is prompting insurers to scrutinise cryptocurrency companies’ security more closely, with underwriters expected to probe if clients are vulnerable to a similar attack when they seek new coverage or renew existing policies, industry insiders and experts said.
The US$6.3 billion Binance heist is prompting insurers to scrutinise cryptocurrency companies more closely, with underwriters expected to probe for vulnerabilities when seeking new coverage or renewing existing policies. Insurers are not expected to retreat from the crypto sector, but the largest crypto theft on record could bring tougher scrutiny of crypto firms' exposure to Binance and any weaknesses identified in the attack.
Experts say that no available crypto insurance could cover a loss of the scale suffered by Binance, and many policies have exclusions for state-backed cyberattacks. Insurers will be asking specific questions about Binance's exposure and security measures, and may require the resolution of any identified weaknesses during policy renewal.
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