M2 Recovery, a prominent InsurTech firm, has recently unveiled a novel insurance product specifically designed to address the legal expenses associated with the recovery of stolen digital assets.
The introduction of this policy by M2 Recovery is timely. Digital asset crime reached a record $20.6bn in illicit blockchain transactions in 2023, with the incidence of crimes doubling from the previous year. For victims, the financial burden of recovering stolen crypto assets can be exorbitant, often exceeding £250,000 in legal and associated costs.
M2 Recovery specialises in the recovery of financial losses due to fraud and financial mismanagement. Their expertise includes a robust in-house legal team that collaborates closely with law enforcement and financial entities to track and recover misplaced or stolen assets.
The newly launched insurance policy covers up to £250,000 of legal expenses and disbursements needed to recover assets lost due to theft or fraud. This coverage extends to a broad range of digital assets, including those invested through the metaverse and various utility tokens like Freeway Tokens.
M2 Recovery’s insurance policy is unique in the market, providing comprehensive coverage for legal costs without requiring policyholders to share any recovered amounts with litigation funders. This aspect is crucial for individuals and entities making substantial investments in cryptocurrencies.
M2 Recovery has partnered with McGill and Partners, a global boutique specialist (re)insurance broker, to facilitate the launch of this innovative product. The policy itself is underwritten by insurers at Lloyd’s of London, ensuring a solid backing and reliable claims service.
M2 Recovery founder Neil Holloway 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.
“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.”
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