Cryptocurrency Hack Protection Insured by Lloyd’s Syndicate

A group of underwriters, called Atrium (Lloyd’s syndicate for Coincover) have developed a £100,000 policy in response to a surge in reports of the hacking of cryptocurrency accounts.

According to Lloyd’s, the policy has a “dynamic limit” that increases or decreases in line with the price changes of crypto assets. This means that the insured will always be indemnified for the underlying value of their managed assets even if this fluctuates over the policy period.

Industry concerns

Around three-quarters of investors cite theft as their main fear of digital currencies, according to a survey by America’s Grayscale Investments.

The figures seem to justify these fears. CipherTrace, a blockchain intelligence firm, reports that the theft of crypto assets by hackers reached $480 million in the first half of 2019. Moreover, May of last year brought bad news for Binance – one of the world’s biggest cryptocurrency exchanges – which claimed to have suffered a…