Team Rizzo, operating subnets and validator services on Bittensor, has secured $25 million in insurance coverage against hacking risks.
Insurance for Team Rizzo
Team Rizzo has insured its validator services and machine learning businesses for $25 million. The coverage, arranged by Native, protects against smart contract hacks that could lead to token loss used for network validation on Bittensor.
Current Risks in the Crypto Industry
Hacks continue to pose significant risks in the crypto industry, especially in sectors like decentralized finance (DeFi) and staking, where insurance options remain limited. Last week, Bybit, one of the largest cryptocurrency exchanges, lost $1.5 billion to hackers linked to North Korea.
Features of the Insurance Process
Native broker provided Team Rizzo's insurance coverage in just four weeks, which is notable given that traditional insurance might take three to six months. Native also facilitates access to traditional insurance markets, like Lloyd’s of London, for certain cryptocurrency covers.
Securing such insurance coverage is a significant step in building trust in cryptocurrency projects, particularly with ongoing hacking risks.
