05/29/2026
During the Inaugural Private & Non-For-Profit Directors & Officers Insurance ExecuSummit last week, Neil Hartzel, alongside Keith Lavigne and moderator Miguel Cano, presented “Cracking Crypto: Tokens, Deregulation & Hidden Exposures – Next Frontier of D&O Risk,” highlighting emerging challenges in the D&O space.
Here are a few takeaways from their presentation:
1. The risk hasn’t changed - only the vehicle has.
Crypto-related litigation is accelerating, but at its core, it reflects familiar fraud patterns - now executed through more complex and less transparent digital channels.
2. A shifting regulatory environment is creating uncertainty - and exposure.
As the regulatory tone evolves toward a more hands-off approach, many digital assets may fall outside traditional securities frameworks - leaving companies and directors to navigate new legal boundaries.
3. D&O risk is expanding across all organizations - not just public companies.
Private companies and non-profits engaging in crypto or digital asset transactions face growing exposure, particularly as governance and oversight expectations struggle to keep pace.
4. Due diligence is no longer optional - it’s critical risk mitigation.
From third-party platforms to financing arrangements, organizations must thoroughly vet counterparties and infrastructure - or risk being swept into fraud and litigation tied to bad actors.
5. Real-world claims highlight emerging vulnerabilities.
Recent scenarios - from fraudulent crypto investment platforms tied to organized crime to consumer fraud via crypto kiosks at gas stations - demonstrate how easily losses can occur and trigger D&O claims.
Connect with our team to discuss how we can help you navigate these evolving risks.
https://hubs.li/Q04jpm7c0
