Bloomberg Law: Binance Did Not Buy Cyber Insurance, Only a Small Portion of Stolen Losses May Be Covered

November 3: According to Bloomberg Law, people familiar with the matter said Binance has taken out directors and officers (D&O) liability insurance for executives who may face regulatory investigations or litigation over this theft incident, but like other crypto companies, Binance did not purchase cyber insurance. The report said that as Binance compensates affected users of the record theft of about $6.3 billion, insurance may cover only a small portion of its losses; even if digital asset companies can seek payouts through crypto asset, crime and D&O policies, such policies usually contain exclusions. Binance previously said the funds used to make users whole came from part of the SAFU fund, part of the contract insurance fund, and Binance's own corporate funds.