Binance's $6.3bn hack: How crypto insurance works

Hackers stole $6. 3 billion from Binance in the world’s biggest crypto heist , putting a spotlight on how cryptocurrency exchanges insure their digital assets against theft and cyberattacks. But insurance protection is far from uniform. Coverage depends on how assets are stored, how hackers gain access and the specific terms of the policy. Limited regulation and volatile crypto prices have long made insurers wary of the sector, despite growing demand for protection against digital asset theft and claims against company executives. While both crime and demand for protection have tracked cryptocurrencies’ meteoric rise, underwriting such risks remains a niche business offered largely by specialist insurers in the Lloyd’s market and in Bermuda. What is digital asset insurance?

Digital asset insurance is a range of policies designed to protect cryptocurrency exchanges, custodians and other companies operating in the sector against financial losses arising from the theft of digital assets, cyberattacks, technology failures and other business risks. Unlike traditional insurance, these policies are tailored to risks associated with blockchain technology, including the theft or loss of private keys, wallet security breaches, smart contract vulnerabilities and failures in digital asset custody. The global crypto insurance market was valued at $9. 37bn in 2025 and is projected to reach $184. 98 billion by 2033, according to Data Bridge Market Research . The research firm cited growing institutional adoption of cryptocurrencies and rising incidents of cyberattacks and digital asset theft among the factors driving demand. Coverage can include several types of policies: crime insurance for theft, social engineering and scams; cyber liability for breaches, hacks and regulatory…