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ARTICLE · 05 JANUARY 2023

Insurers Beware Of "Silent Crypto" Exposure

Wilson Elser Moskowitz Edelman & Dicker LLP
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The recent implosion of crypto firm FTX and its affiliates provides a case study for potential crypto exposure under traditional insurance policies. The FTX debacle is described herein...

United StatesTechnology
Anjali Das
Anjali Das
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The recent implosion of crypto firm FTX and its affiliates provides a case study for potential crypto exposure under traditional insurance policies. The FTX debacle is described herein is an introduction to a series of four articles on the potential liability exposure and coverage: Silent Crypto for D&O and Corporate Liability Insurance (Part I), Silent Crypto Exposure for Accountants (Part II), Silent Crypto Exposure for Lawyers (Part III), and Crime and Custody Coverage for Crypto Assets (Part IV).

The family of FTX entities (collectively, FTX) was run by Sam Bankman-Fried (SBF), an American entrepreneur, investor and former billionaire, and operated in the Bahamas and the United States in Miami, Florida. FTX began in 2019 as an exchange for trading and lending crypto and digital assets. In addition, FTX operated a mobile application offering investment services for retail and professional firms to trade cryptocurrencies. The apparent success of the FTX exchange

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