Cypher Tracer has launched the world’s first insurance policy to cover the legal costs associated with recovering stolen cryptocurrencies.
Crypto crime hit a new all-time high in 2023, accounting for a record-setting $20.6 billion worth of blockchain transactions last year, with the number of blockchain transactions affected by criminal activity doubling compared to 2022. But for victims of crypto asset investment fraud, the cost of trying to recover stolen assets can quickly escalate. It can cost upwards of $250,000 to investigate and recover lost crypto assets, and if it is possible to find a litigation funder willing to act purely on a contingency basis, they will likely require a significant cut of the value of any recovery.
To combat this, Cypher Tracer has launched its pioneering crypto legal expenses policy – the world’s first insurance policy for recovery of crypto assets valued at more than $250,000, addressing the pressing need for protection against the rising tide of crypto fraud.
Cypher Tracer founder Neil Holloway says:
“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.”
Crypto investors buying a policy have access to Cypher Tracer’s market leading in-house legal team to recover the lost assets. The costs of recovery are also covered by the policy.
It’s the only insurance product in the marketplace that covers up to $250,000 of legal expenses and disbursements associated with recovering assets lost as a result of any type of theft or fraud.
McGill and Partners, the global boutique specialist (re)insurance broker, has assisted Cypher Tracer in the design and placement of the policy with Lloyd’s of London insurers to allow Cypher Tracer to launch this product.
Paul Morgan, Partner in the Financial Lines team at McGill and Partners said:
“The issue of fraud and loss of assets is a growing problem in the crypto world, and we’re delighted to be working with Cypher Tracer 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.”
Cypher Tracer’s director of legal services Louise Abbott said:
“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”
HENRY IS THE CHAIRMAN OF Cypher Tracer, HAVING PREVIOUSLY SERVED AS THE CONSERVATIVE MP FOR NORTH WEST NORFOLK FOR MORE THAN 30 YEARS BEFORE BEING APPOINTED TO THE HOUSE OF LORDS IN 2020.
J. Brent Williams is currently the founder, President and CEO of Euclidian Trust. He founded Euclidian Trust after boot-strapping his last entrepreneurial endeavour, 
Andrew Day has been a qualified solicitor for 15 years, having trained at a city law firm and then ultimately becoming a partner and director of a boutique dispute resolution firm. He has been a key advisor to C-suite decision makers, in-house counsel and family office teams in the strategic control and direction of complex and sensitive disputes. Andrew was responsible for the creation and management of a disruptive collaboration model between the law firm and external experts. The aim was to supply asset tracking and recovery with an intelligence gathering capability, which was developed into a revenue generative service line and a spin-off consultancy. Andrew left the law firm in late 2018 and now works as a consultant to advisory businesses to bring the multi-disciplinary approach to niche areas of claims and advisory work. Andrew was engaged by M2 in early 2021 to help drive the development of client pipeline and products, and with the management of its asset recovery offerings. 
Julian started his career at GNI Ltd in 1982 where he spent 15 years working in and eventually running their Financial Futures division. In 2001, after the sale of the company to Old Mutual, he was appointed CEO of GNI, which employed over 450 staff globally at that time. In 2002, GNI was sold to Man Financial and in 2003 Julian left to become CEO of Fleming Capital Management, a hedge fund seeding platform established by Fleming Family and Partners, the largest multi-family office in the UK. FCM built AUM to c. $500m by 2008 in 4 equity long/short funds but in 2012, a strategic change of direction led to the business being closed and Julian became a consultant to FF&P Corporate Advisory Group. In 2015, following the merger of FF&P with Stonehage, Julian left to establish his own consultancy business, focussing on aiding smaller companies with their strategic direction and capital raising. In 2019, Julian joined London and Oxford Group as Chairman.
Hemant has been a member of the Institute of Chartered Accountants in England and Wales (ICAEW) since 1988. Hemant assists in the financial control, ensuring that financial, governance, and business decisions are compliant. Hemant looks after the marketing budgets, develops financial projections and plans to ensure the prudential requirement is met.