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  • ๏ปฟAnjali Belgaumkar
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    Writer by choice, CryptoCurrency Writer, and Researcher by chance. Currently, focusing on financial news and analysis, as well as cryptocurrency news and data. One may not call me a crypto โ€œEnthusiastโ€ but trust me I'm getting there.

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Crypto News: Team Rizzo Gets $25 Million Insurance Coverage Against Hacks on Bittensor Network

Story Highlights
  • Team Rizzo secures $25M blockchain insurance, protecting Bittensor validators from hacks amid rising crypto security risks

  • Native fast-tracks $25M coverage for Team Rizzo in just 4 weeks, revolutionizing crypto risk protection.

Team Rizzo, which operates subnets and validator services on Bittensor, has secured $25 million in blockchain-based insurance coverage against hacking risks. As reported by Coindesk, the coverage was arranged by Native, a digital asset insurance broker and specialist, to protect Rizzoโ€™s validator services and machine learning businesses on Bittensor, a popular AI-driven cryptocurrency network. This coverage is designed to protect against smart contract hacks, which could lead to the loss of tokens used to validate the networkโ€™s proof-of-stake consensus mechanism.

This development comes as hacks continue to pose significant risks in the cryptocurrency space, especially in sectors like decentralized finance (DeFi) and staking, where insurance options are still limited. Last week, Bybit, one of the largest cryptocurrency exchanges, lost $1.5 billion to hackers linked to North Korea.

Native Enables Rapid Crypto Coverage

Founded in 2019, Nexus Mutual provides blockchain-based insurance, incentivizing its community to deploy assets into syndicates that back crypto-related risks. Native, which holds one of the largest capital pools on Nexus Mutual, also facilitates access to traditional insurance markets, such as Lloydโ€™s of London, for certain types of crypto-related covers.

The speed with which Native arranged the $25 million coverage for Team Rizzo has garnered attention, taking just four weeks to complete. Native co-founder Dan Ross said, โ€œThis is the first time Bittensor has been underwritten. Team Rizzo wanted to buy their own policy to attract people to come and stake to their own validator and make them feel safe. So we’ve been able to create a new product, underwrite a new protocol, get third party smart-contract cover with a $25 million limit in about four weeks. If we did that with traditional insurance, that’s a three to six month thing at minimum โ€” if it could be done at all.โ€

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