M2 Recovery Launches New Insurance Policy for Stolen Crypto
Last year, cryptocurrency crime met record highs, with data suggesting US$24.2bn was received by illicit accounts in 2023, according to the Chainalysis Crypto Crime report for 2024. Fraudulent on-chain activity doubled between 2022 and 2023, highlighting the need for businesses and individuals to meet new requirements to protect themselves from bad actors.
In response to the growing need for cyber asset protection, M2 Recovery launched a new insurance policy that covers up to £250,000 (US$316,000) of legal expenses and disbursements associated with recovering assets lost as a result of any theft or fraud.
For the victims of crypto asset investment fraud, the cost of trying to recover stolen assets can quickly rise. To combat the climbing legal costs, M2 Recovery launched a pioneering crypto legal expenses policy, the world's first insurance policy for recovery of crypto assets valued at more than £250,000 (US$316,000).
Neil Holloway, founder of M2 Recovery said: "Our insurance policy is the first of its type globally, which provides policyholders with legal expenses following crypto fraud. We can insure legal expenses relating to crypto assets collectively worth tens of millions for investors, neobanks and in-play betting companies.
He added: "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."
Lloyds of London and M2 Recovery
McGill and Partners, a global boutique specialist (re)insurance broker, has assisted M2 Recovery in the design and placement of the policy with Lloyd’s of London insurers.
Paul Morgan, Partner in the Financial Lines team at McGill and Partners commented:
“The issue of fraud and loss of assets is a growing problem in the crypto world, and we’re delighted to be working with M2 Recovery on this pioneering solution, offering pre-incident crypto legal expenses insurance. That we’ve been able to work in partnership to develop a solution that responds to a pressing need, emphasises the agility we have as a business to respond quickly and in a way that meets the pressing needs of the marketplace more widely.”
Louise Abbott, director of legal services at M2 Recovery commented: "The threat to crypto assets has never been greater, with cyber criminals becoming increasingly sophisticated in how they act. We have built a team of cyber intelligence specialists, recovery agents, forensic investigators and expert lawyers, all working under one roof with our proprietary technology to combat this fraud.”
"In what is an incredibly complicated market, we are incredibly proud to have a high success rate, and this new policy means more victims will be able to use our exceptional skill set to recover their crypto assets"
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