Cryptocurrency Theft is on the Rise
According to a recent study, losses from theft, fraud, and misappropriation of cryptocurrency increased to $1.2 billion worldwide in the first quarter of 2019, which is already 70 percent of all such activity from 2018.
In fact, it was reported that hackers used phishing, viruses, and other techniques to steal $41 million in cryptocurrency from Binance, one of the world’s largest cryptocurrency exchanges. This is on the heels of an announcement by Fidelity Investments that it will soon buy and sell bitcoin for institutional customers.
With insurers providing additional crypto-related offerings and products, and with jurisprudence beginning to develop on whether cryptocurrency is covered under commercial crime and fidelity policies, those whose practice touches upon D&O insurance, crime and fidelity insurance, and cyberinsurance should be aware of all developments regarding the security of cryptocurrency.
For more on the insurance marketplace’s response to initial coin offerings and other cryptocurrency issues, check out Goldberg Segalla partner Todd Kremin’s Timely Notice podcast episode, which you may stream here.