Insurers shun FTX-linked crypto firms as contagion risk mounts

Published by
Reuters UK

By Noor Zainab Hussain and Carolyn Cohn (Reuters) – Insurers are denying or limiting coverage to clients with exposure to bankrupt crypto exchange FTX, leaving digital currency traders and exchanges uninsured for any losses from hacks, theft or lawsuits, several market participants said. Insurers were already reluctant to underwrite asset and directors and officers (D&O) protection policies for crypto companies because of scant market regulation and the volatile prices of Bitcoin and other cryptocurrencies. Now, the collapse of FTX last month has amplified concerns. Specialists in the Lloyd’s …

Read More