• Press Releases
    • Submit a press release
    • Read All
  • Contact us
Advertise
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
        • Ethereum Casinos
        • Solana Casinos
        • LiteCoin Casinos
        • DogeCoin Casinos
        • Live Crypto Casinos
        • New Casinos
        • Instant Withdrawal Casinos
        • Cash App Casinos
        • No KYC Casinos
        • VPN Casinos
        • Offshore Casinos
          • Crypto Casinos IT
          • Crypto Casinos ES
            • All Guides
          • Crypto Casinos JP
          • Crypto Casinos SG
          • Crypto Casinos MY
          • Crypto Casinos KR
          • No GAMSTOP Casinos in UK
          • No Cruks Casinos NL
      • Crypto Betting
        • No ID sportsbooks
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
        • Aviator Sites
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Breaking News: Is The Approval Of Crypto ETFs At Risk? SEC Operations Frozen By Gov. Shutdown
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
        • Ethereum Casinos
        • Solana Casinos
        • LiteCoin Casinos
        • DogeCoin Casinos
        • Live Crypto Casinos
        • New Casinos
        • Instant Withdrawal Casinos
        • Cash App Casinos
        • No KYC Casinos
        • VPN Casinos
        • Offshore Casinos
          • Crypto Casinos IT
          • Crypto Casinos ES
            • All Guides
          • Crypto Casinos JP
          • Crypto Casinos SG
          • Crypto Casinos MY
          • Crypto Casinos KR
          • No GAMSTOP Casinos in UK
          • No Cruks Casinos NL
      • Crypto Betting
        • No ID sportsbooks
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
        • Aviator Sites
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Bitcoinist.com
No Result
View All Result
Breaking News: Is The Approval Of Crypto ETFs At Risk? SEC Operations Frozen By Gov. Shutdown
FTX Crypto insurance

FTX-Linked Crypto Firms Are Getting Pushback From Insurers

Best Owie
by Best Owie
2 years ago
·
Posted in Crypto News
Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

FTX imploded back in November and there have been a number of developments since then. The effect of the crypto exchange’s collapse is still being felt by both users and companies in the space, and the most recent development shows that the contagion is far from over. This time around, it is insurance companies that are taking up the fight once more.

Insurers Avoid Firms With FTX Exposure

It is no longer a secret that a number of crypto firms lost funds when FTX collapsed. But now, even as these firms try to move forward, they are still haunted by the actions of Sam Bankman-Fried and the decline of its exchange.

In a Reuters article published in the early hours of Monday, it shows that insurers are reportedly turning away crypto firms based on their FTX exposure. For some such as Superscript, the broker for Lloyd’s of London, it comes down to how much of their assets a client had on the now-bankrupt crypto exchange.

Related Reading: Shiba Inu Falls Out Of Favor With Ethereum Whales, Will This Affect SHIB Price?

Ben Davis, digital assets lead at Superscript, says that if a client has 40% of total assets on FTX that are currently inaccessible, “that is either going to be a decline or we’re going to put on an exclusion that limits cover for any claims arising out of their funds held on FTX.”

Lloyd’s of London and Bermuda insurance specialists also said that insurers now require clients that are crypto businesses to reveal their exposure to FTX. Additionally, insurers are reportedly giving clients a questionnaire to fill out to determine if they had invested in the defunct crypto exchange or had held any assets there, according to the president of Hugh Wood Canada, Kyle Nichols.

While some insurers have taken to provide an exclusion for clients with exposure in some cases, Relm, a crypto insurer, takes a more black-and-white stand. Co-founder Joe Ziolkowski said the crypto insurer would rather decline coverage than include a crypto or regulatory exclusion for a client.

Bitcoin price chart from TradingView.com (FTX)

BTC price suffers declines since FTX collapse | Source: BTCUSD on TradingView.com

Investors Want More Crypto Insurance

The cautious route being taken by insurance providers comes at a time when crypto investors are clamouring for more coverage. Just shortly after FTX had imploded, there had been a reported increase in requests for coverage.

One digital wallet, Liminal, had quickly moved to take out a $50 million insurance with Lloyd’s of London, while Arabian Business reported that other firms were looking to do the same, naming Canopius, Nexus Mutual and Zurich Arch as some of the prominent names in underwriting crypto risks for crypto companies. The demand for more coverage also shines through in a $14 million Series A funding for Evertas, a crypto insurance firm. 

Related Reading: Bitcoin Maximalist Michael Saylor Says Ethereum Could Collapse Like LUNA

In its report, Reuters raises concerns regarding D&O policies which are for legal fees in case lawsuits are brought against directors and officers of a company. However, in a case such as FTX which is being charged with fraud, it is unclear if these policies will pay out. Ziolkowski also said that D&O insurance coverage may now be limited to only tens of millions of dollars for the broader crypto market, compared to the up to $1 billion coverage for cold wallet storage providers not connected to the internet.

Featured image from Analytics Insight, chart from TradingView.com
Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.
Best Owie

Best Owie

Follow

Best Owie is a Managing Editor at Bitcoinist with extensive experience and a proficient expert known for crafting captivating and insightful content. Best boasts over six years in the crypto sector, and has supervised the conception and publication of thousands of articles. Best is also a content and marketing strategist with the ability to make sure your content reaches the right audience and beyond. In every aspect, Best stands out as a consummate professional, always striving for unparalleled excellence both within and outside the workplace.

Full Profile

Related Posts

Bitcoin Hyper Raises $1M in a Week – Could It Be the Next 1000x Crypto?

Bitcoin Hyper Raises $1M in a Week – Could It Be the Next 1000x Crypto?

9 minutes ago
Best Crypto to Buy After Grok's Explosive Bitcoin Price Prediction

Best Crypto to Buy After Grok’s Explosive Bitcoin Price Prediction

1 hour ago
Solana is ‘The New Wall Street’ Says Bitwise Exec, as Snorter Token’s Presale Explodes.

Solana is ‘The New Wall Street’ Says Bitwise Exec, as Snorter Token’s Presale Explodes

1 hour ago
Next Crypto to Explode Live News Today: Timely Insights for Chart Sniffers (October 6)

Next Crypto to Explode Live News Today: Timely Insights for Chart Sniffers (October 6)

57 minutes ago
Bitcoin Hyper ($HYPER) Live News Today: Latest Insights for Bitcoin Maxis (October 6)

Bitcoin Hyper ($HYPER) Live News Today: Latest Insights for Bitcoin Maxis (October 6)

56 minutes ago
stablecoins

A New Era Of Fair Finance? GENIUS Act, Stablecoins Could End Bank Exploitation, Expert Says

4 hours ago

Premium Sponsors

Press Releases

  • The Quiet Market Shift Investors Might Be Missing: How Tapzi Is Challenging Institutional Favorites

    The Quiet Market Shift Investors Might Be Missing: How...

    3 days ago
  • Investors Search for Long-Term Upside in This Under-$0.01 Crypto of 2025 Tapzi

    Investors Search for Long-Term Upside in This Under-$0.01...

    3 days ago
  • MoonBull Presale Explodes with over 11,800% Projected ROI as Uptober Sends the Market Soaring

    MoonBull Presale Explodes with over 11,800% Projected ROI...

    3 days ago
  • 狗狗幣引領『Uptober』Meme...

    3 days ago
  • ตัวละคร Snorter ขนฟูโต้คลื่นบนเซิร์ฟบอร์ดสีชมพู

    จับตา Uptober!...

    4 days ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

About Us

  • Advertise
  • Contact us
  • Editorial Policy
  • Privacy Policy
© 2025 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
      • Crypto Betting
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Advertise

© 2025 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.