InsurAce Announces To Pay Millions For Terra Insurance Claims

InsurAce Announces To Pay Millions For Terra Insurance Claims

Protocol for DeFi insurance The community has chastised InsurAce for abruptly cutting its claims deadline for Terra-related insurance claims, but the company has already agreed to pay out $11 million to claimants. INSUR dropped 7.6% this year.

It has processed virtually all of the 175 claims received and will pay back $11 million. Following the fall of the Terra (LUNA) blockchain, InsurAce made a stir by announcing it has extended the claims window for people with cover relating to the stablecoin Terra USD (UST).

Protocol for DeFi insurance According to InsurAce, it was entirely within its rights to lower the claims time for anyone impacted by the USDT depeg incident from 15 to seven days. 

The move sparked debate in the crypto world, with some speculating that InsurAce was attempting to decrease the number of claims it would have to settle. The failures of Terra and UST have drawn the attention of regulators all around the world, including the famed South Korean financial crimes unit.

InsurAce may have legal remedies if the UST de-pegging was caused by more than just a protocol failure.

Despite repeated warnings from the ECB, the eurozone cryptocurrency sector continues to flourish. Digital currencies, according to the president of the European Central Bank, have no economic value. The organisation is urging politicians around the world to act quickly to regulate cryptocurrencies before the bubble collapses.

The ECB’s Financial Stability Review study, which the banking organization presented this week, included these warnings.

The ECB’s warnings are in line with requests from regulators in the United Kingdom and the United States, as well as the IMF. Cryptocurrencies, according to regulators, should be regulated as quickly as possible since they pose a considerable risk not only to users but also to the global financial system.

The paradox is that despite the warnings of regulators and other international financial system groups, cryptocurrency use and commerce have continued to flourish in the eurozone and around the world.

Such dynamics will only persist as long as an increasing number of investors assume that prices will continue to rise.

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