A federal appeals court has affirmed that a homeowners insurance policy does not cover the theft of cryptocurrency because the loss of a digital currency does not involve a “direct physical loss” as required by the policy.
The Fourth Circuit Court of Appeals held that a physical impact to covered property is required for a “direct physical loss” to have occurred and no such physical impact to cryptocurrency is possible because it exists wholly virtually.
The three justice panel of the appeals court in Richmond upheld a February 2023 ruling by the federal district court for Eastern Virgi