Explainer-Binance’s $6.3 billion hack: How crypto insurance works

By Noor Zainab Hussain and Manya Saini Oct 30 (Reuters) 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 made insurers wary of the sector, despite growing demand for protection against digital asset theft and ‌claims against company executives. While both crime and demand for protection have tracked cryptocurrencies meteoric rise, underwriting such risks remains a niche business offered largely by specialist insurers in the Lloyd s market and in Bermuda. WHAT IS DIGITAL ASSET INSURANCE? Digital asset insurance is a range of policies designed to protect cryptocurrency exchanges, custodians and other companies operating in the sector against f