As Tesla takes the plunge, wary insurers watch crypto craze from the sidelines

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If Elon Musk's Tesla wanted to insure all of its recent US$1.5 billion bitcoin investment against the myriad of pitfalls it could encounter, like ...

If Elon Musk's Tesla wanted to insure all of its recent US$1.5 billion bitcoin investment against the myriad of pitfalls it could encounter, like hacks, theft and fraud, it would be out of luck.

Insurers and brokers estimate that of the few that provide such insurance, none can offer coverage beyond US$750 million for any client.The risks are considerable, with U.S.-based cyber security firm CipherTrace estimating reported losses from theft, hacks, and fraud totalling US$1.9 billion in 2020.

Cryptocurrencies have struggled to win the trust of mainstream investors and the general public due to their speculative nature and potential for money laundering. Many custodians and cryptocurrency exchanges are also looking to increase the limits in their existing policies as the value of cryptocurrencies has risen, insurers and brokers said.And just as insurers slowly warm to the new business potential as deep-pocketed mainstream financial institutions increasingly embrace cryptocurrencies, they face a fresh challenge in the form of non-fungible tokens .

The establishment of a robust secondary marketplace could help create capacity to insure these assets, the person said.

 

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Being cancer-stricken and begging CPF Board to repay overdue debt; that which in any case cannot be done as the money had been commingled and funneled to private entity Temasek Holdings for Ho Ching to wager on unviable, untenable and ultimately, invariably doomed gambles

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