Originally posted on: https://www.insurancebusinessmag.com/uk/news/breaking-news/m2-recovery-tackles-crypto-scams-with-new-insurance-policy-517330.aspx

M2 Recovery has announced an expansion of its crypto insurance policy with the introduction of after-the-event (ATE) legal expenses insurance. This new offering, developed in partnership with Lloyd’s of London insurers and broker McGill and Partners, is designed to help individuals recover stolen digital assets after they have already been targeted by crypto fraud.

According to a news release, the addition of ATE insurance comes at a time when crypto scams are on the rise. Recent data from TRM Labs revealed that the value of stolen crypto assets worldwide more than doubled in the first half of 2024. This surge in theft coincides with an increase in first-time crypto investors, many of whom are drawn to the market by the promise of high returns. However, this influx of new investors has also led to a growing number of victims of fraud.

M2 Recovery’s new policy is aimed at providing financial support and legal expertise for those who have already been affected by crypto theft. The company highlighted that investigating and recovering stolen assets can be a costly process, with expenses often exceeding £250,000.

Neil Holloway, founder and managing director of M2 Recovery, noted the significance of the new offering. “The safety and security of your crypto remains our top priority,” Holloway said. “We were the first company in the world to offer legal expenses insurance for crypto, and we are now the first to offer this protection to investors who have sadly lost their assets.”

Louise Abbott, director of legal services at M2 Recovery and a crypto law specialist, shared her perspective on the growing problem of crypto fraud. “I have witnessed first-hand the increasing number and sophistication of scams and frauds within the crypto space. I work on these cases every day and witness the emotional damage they can do,” she said.

“It’s clear from the increasing number of crypto-fraud and related cases that come across my desk, that the demand for secure, after-the-event legal expenses insurance has never been greater. The surge in crypto fraud highlights the critical need for trusted recovery solutions, and I am delighted that we are now able to offer this vital service.”