Bloomberg Law: Binance Did Not Purchase Cybersecurity Insurance, Insurance Covers Only a Small Portion of Losses

Odaily: According to sources monitoring the situation, Binance has taken out directors and officers liability insurance (D&O) for executives who may face regulatory investigations or lawsuits as a result of the hack, but has not purchased cybersecurity insurance. The report states that when Binance compensates affected users of the approximately $6.3 billion hack, insurance may cover only a small portion of the losses. Digital asset companies can seek compensation through crypto asset, crime, and D&O policies, but such policies typically contain exclusion clauses. Binance previously stated that the funds to cover the shortfall came from part of the SAFU fund, part of the futures insurance fund, and Binance's own corporate funds. (Bloomberg Law)