There is general consensus that 2017 was a banner year for cryptocurrencies. According to CNBC, initial coin offerings (ICOs) in 2017 raised approximately $3.7 billion for issuing companies. And despite some recent weakness in high-profile cryptocurrencies like bitcoin, we expect an increasing number of ICOs from an ever-expanding scope of industries. With opportunity invariably comes risk, however, and we are spending significant time counseling clients on how best to mitigate risk associated with cryptocurrencies, including lawsuits, regulatory scrutiny and cyberattacks. In fact, there already have been significant enforcement actions and public investigations initiated by federal and state regulators regarding ICOs, as well as private class action litigation filed. Not surprisingly, insurance coverage for these types of exposures is high on the list for discussion.
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