Orser said the company can insure losses of up to $5 million, 200 $BTC or 2,000 $ETH, using its own assets. For larger policies, it works with other insurers to share the risk. Those funds are kept in separate accounts and held in cold storage at regulated custodians, he added.
Abu Dhabi-based Soter operates under a Bermuda insurance license that allows it to insure risks in cryptocurrencies as well as traditional currencies. Its bitcoin and ether insurance programs are funded with the same currencies used to pay claims.
Soter also received full license approval from Dubai’s financial regulator, adding to its regulated operations in Bermuda. The company, headquartered in Abu Dhabi, has offices in London, New York and Dubai.
The investment follows Binance’s $6.3 billion hack on Oct. 29 and a reported $133 million theft involving French bank Crédit Mutuel Arkéa.
“We’ve seen a slight hardening in the market for crime through the latest incidents, but the market is still evolving,” Orser said, referring to rising insurance prices for theft-related losses.
The insurer also acknowledged that the industry has yet to settle how policies should treat losses caused by autonomous AI agents, which can execute transactions on behalf of users.
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