Binance Fails to Obtain Cybersecurity Insurance, External Coverage for Losses Limited

Binance has failed to secure cybersecurity insurance, and following a hacker attack involving approximately $6.3 billion in stolen assets, the external commercial insurance is expected to cover only limited losses. Binance holds directors and officers liability insurance, which may provide protection against regulatory investigations and lawsuits targeting the company's directors or executives after the incident, but it does not directly cover the stolen cryptocurrency assets. Even if digital asset companies hold relevant insurance, they may be subject to exclusions in the policy, and the specific coverage will depend on the policy terms.

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