With the UK regulator – the Financial Conduct Authority – clamping down on Binance, one of the world’s largest cryptocurrency exchanges, this serves as a reminder to anyone looking to invest in cryptocurrency to check both the legal status of the investments (and their host platform) and, more broadly, to check what consumer protections are…
Before-the-event crypto legal expenses insurance
Crypto crime hit a new all-time high in 2021, with crypto owners being defrauded out of more than £11 billion over the course of the year (this was almost double the 2020 figure).
M2’s before-the-event insurance policy is the first of its type globally, which provides policyholders with legal expenses following crypto fraud.
And with crypto usage growing faster than ever – there were over £12.5 trillion worth of transactions in 2021, up 567% from 2020! – cyber crime will inevitably increase exponentially in the future.
However, for victims of crypto asset investment fraud, the cost of trying to recover lost assets can quickly escalate. Legal fees, court fees, investigatory fees, witness statements, expert reports, counsel’s opinions. It all adds up.
In fact, it can cost upwards of £250,000 to investigate and recover lost crypto assets, and if you’re able to find a firm or a litigation funder willing to act purely on a contingency basis, they will likely require a significant cut of the value of your recovery.
But we’ve created a groundbreaking solution.
How do we help?
Our pioneering before-the-event crypto legal expenses policy is the world’s first insurance for recovery of crypto assets valued at £400,000+.
It’s the only insurance product in the marketplace that covers up to £3 million of legal expenses and disbursements associated with recovering assets lost as a result of any theft or fraud.
We have insured legal expenses relating to crypto assets collectively worth tens of millions for investors, neobanks and in-play betting companies. This includes digital assets invested through the metaverse, utility tokens such as Freeway Tokens, and crypto assets appropriated through man-in-the-middle attacks.
And with more investment scams in play than ever before, reducing your exposure to risk on large crypto investments has never been more important.
The process
1 What is covered?
From insuring your legal expenses exposure before the event, right through to recovering crypto assets should the worst happen, we’re here to protect your crypto investments.
2 Purchase policy
You must buy a policy before you become aware that your investment may be subject to a possible fraud. Policies are valid for five years or until you dispose of the insured assets (whichever occurs earlier).
3 Documentation
To commence a claim under your insurance policy, you will need to notify M2 and our in-house legal team can act as your solicitor (or you can choose your own).
A claim form, along with any required supporting evidence must be submitted either by M2 or your appointed law firm.
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