Binance is scrambling to compensate customers after suffering a massive $6.3 billion hack, but the crypto exchange may only recover a small portion of its losses through insurance. The company holds directors and officers insurance, which could help executives facing regulatory scrutiny or lawsuits tied to the breach. However, Binance, like many other crypto firms, has been unable to secure cyber insurance coverage, according to a source familiar with the matter.
The lack of cyber insurance could leave Binance with significant financial exposure. Even when digital asset companies manage to obtain coverage through crypto, crime, or D&O policies, exclusions often limit their ability to recoup losses. The source, who requested anonymity, highlighted this challenge as Binance works to address the fallout from the hack.