Binance $6.3 billion heist to prompt closer scrutiny by insurers

Partner and co-chair of Herrick’s Insurance, Reinsurance & Dispute Resolution Group, Alan R. Lyons, was quoted in Reuters discussing how the $6.3 billion Binance hack has led insurers to increase scrutiny of crypto companies' security risks.

The article noted that "the ​scale of the Binance heist also highlights ⁠the limits of the protection available to cryptocurrency businesses, which has traditionally not been uniform."

"A loss of this magnitude prompts underwriters to re-examine their whole crypto book, not just the affected insured, reassessing aggregate exposure, wordings and sub-limits across the portfolio," Alan said.

The predictable response is tighter wordings and clearer exclusions, he explained. 

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