How Crypto Insurance Works After a $6.3 Billion Hack

The $6.3 billion Binance hack has focused attention on how crypto insurance works. The report describes the theft as the world’s biggest crypto heist. The loss has drawn attention to how cryptocurrency exchanges insure digital assets, but policies differ according to storage methods, the way hackers gain access and each contract’s terms. Reuters’ report describes digital asset insurance as a set of policies for exchanges, custodians and other companies facing theft, cyberattacks, technology failures and related business risks. The policies can address risks involving private keys, wallet security, smart contracts and custody systems.