Binance may recover little of $6.3B hack losses through insurance: Report

The FBI attributed the attack to North Korean hackers, raising the possibility that state-backed attack exclusions could complicate any insurance claims. Binance’s $6.3 billion hack could leave the exchange facing substantial losses despite its insurance arrangements, as crypto companies struggle to obtain cyber coverage and the existing policies often contain exclusions for state-backed attacks. The exchange has directors and officers insurance that could protect executives from litigation or regulatory probes, but it has not been able to obtain cyber insurance, Bloomberg Law reported Tuesday, citing a person familiar with the matter. The FBI linked North Korea to the hack, a finding that could complicate insurance claims if policies exclude losses caused by state-sponsored attacks or cyberwarfare. Insurance attorneys say coverage may still be available depending on how the attackers gained access to Binance’s systems and where the stolen assets were stored. However, Pyongyang pushed back against the FBI’s findings. In a statement published by state news agency KCNA, Kim Yo Jong, the sister of leader Kim Jong Un, accused the US of using the allegations to portray the country as a ...