Team Rizzo Gets $25 Million Insurance Coverage Against Hacks on Bittensor Network
The Rizzo team, which operates subnets and verification services on Bittensor, has received $25 million in blockchain-based insurance to prevent hacker risks. As Coindesk reports, the coverage is arranged by digital asset insurance brokers and expert locals to protect Rizzo’s validator service and machine learning business Bittensor, a popular AI-Driven-powered cryptocurrency network. This coverage is designed to prevent smart contract hacking, which can lead to the loss of tokens used to verify the consensus mechanism of network proof.
This development is a major risk posed by hackers in the cryptocurrency space, especially in areas such as Decentralized Financing (DEFI) and Stateking, where insurance options remain limited. Bybit, one of the largest cryptocurrency exchanges, lost $1.5 billion in North Korea-related hackers last week.
Founded in 2019, Nexus Mutual provides blockchain-based insurance that inspires its communities to deploy assets to groups with crypto-related risks. Locals are one of the largest capital pools on Nexus Mutual and also help access to traditional insurance markets, such as Lloyd’s of London, for certain types of cryptocurrency-related covers.
The speed of the Rizzo team’s $25 million coverage has attracted attention and can be completed in just four weeks. “This is the first time Bittensor has been underwritten. The Rizzo team wants to buy their own policies to attract people to harm their validators and make them feel safe. So we have been able to create a new product, underwriting a new agreement, and get a third-party smart contract cover for a $25 million limit in about four weeks. If we do that with traditional insurance, it’s at least three to six months of things – if we can.”
