Loss Of Cryptocurrency Does Not Constitute Direct, Physical Loss, Judge Says

Mealey's (August 18, 2022, 2:52 PM EDT) -- SAN FRANCISCO — A breach of contract and bad faith suit arising out of the loss of cryptocurrency cannot proceed because cryptocurrency, as a matter of California law, does not constitute a direct physical loss for which coverage is provided under the homeowners policy at issue, a California federal judge said Aug. 16 in granting the insurer’s motion to dismiss....