US Appeals Court Rules Home Insurance Doesn’t Cover Crypto Losses
A United States appeals court has ruled that standard home insurance policies do not cover losses from cryptocurrency theft, emphasizing that such policies typically only cover physical property damage or loss.
The Fourth Circuit Appeals Court upheld a lower court’s decision to dismiss a lawsuit filed by homeowner Ali Sedaghatpour against Lemonade Insurance.
Sedaghatpour had sought coverage for a $170,000 loss he incurred in a cryptocurrency scam in December 2021.
Sedaghatpour had transferred the funds to APYHarvest, an entity later identified as a fraudulent investment firm by the Central Bank of Ireland. He claimed to have stored the key to the crypto wallet provided by APYHarvest in his home safe. Upon discovering that his crypto…
