Insurance Companies Shun Clients With Links to FTX Due to High Contagion Risks

Insurance Companies Shun Clients With Links to FTX Due to High Contagion Risks
FTX founder Sam Bankman-Fried (center) is led away handcuffed by officers of the Royal Bahamas Police Force in Nassau, Bahamas, on Dec. 13, 2022. Mario Duncanson/AFP/Getty Images
Bryan Jung
Updated:
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Insurance companies are now denying or limiting coverage to any clients who were exposed to FTX, after the cryptocurrency exchange collapsed last month, leaving creditors with more than $3 billion in losses.

This has left many digital currency traders and exchanges uninsured from any losses due to hacks, theft, or lawsuits, as insurers propose new policy exclusions for any claims related to the FTX scandal to protect themselves from further fallout, Reuters reported.
Bryan Jung
Bryan Jung
Author
Bryan S. Jung is a native and resident of New York City with a background in politics and the legal industry. He graduated from Binghamton University.
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