25 that homeowner Joel Kruger’s loss of 12.5 Bitcoin (BTC) to a phishing scam did not constitute a covered loss under his homeowner’s policy with State Farm Fire and Casualty Company.
According to the court’s opinion, Kruger’s policy only covered “direct physical loss” to property, which did not include intangible assets like cryptocurrency. The judges also noted that Kruger’s loss was not caused by a peril covered in the policy, such as fire or theft.
Kruger argued that the loss of his Bitcoin should be covered under the policy’s “off-premises theft” provision, but the court disagreed, stating that the provision did not apply to intangible assets like cryptocurrency. The court also rejected Kruger’s claim that the loss should be covered under the policy’s “computer fraud” provision.
The court’s ruling affirms a lower court decision to dismiss Kruger’s case. Kruger’s attorney, Jamie Sutton, stated that they are considering appealing the decision to a higher court.
A Virginia District Court judge ruled that Ali Sedaghatpour had no breach of contract claim against Lemonade Insurance because his homeowner’s policy only covered “direct physical loss” of property.
Sedaghatpour sued Lemonade Insurance in 2022 for not covering $170,000 in crypto stolen from him in a scam. This case was unique as it involved a crypto user trying to claim that crypto is personal property under a home insurance policy.
According to the appellate judges, Virginia law states that “direct physical loss” requires present or impending material destruction or harm. They concluded that digital theft of digital currency does not qualify as “direct physical loss,” leading to no coverage for Sedaghatpour’s crypto loss.
Bitcoin is at $67,075, Ether at $2,484, and XRP at $0.51 at the end of the week, with a total market cap of $2.29 trillion. The top three altcoin gainers are GOAT, SAFE, and APE, while the top three losers are AERO, OM, and MOG.
Notable quotations from Vitalik Buterin, Bernstein Research, French Hill, Axel Adler, Brad Garlinghouse, and Paolo Ardoino highlight key insights and predictions in the crypto space.
Bitcoin analyst Timothy Peterson predicts a $100,000 BTC price within three months, citing an initial stage of a bull run and potential for significant gains in the near future. Peterson believes Bitcoin’s current run is similar to previous cycles and could reach six figures soon. “Within reasonable limits,” he stated.
![Image description](https://s3.magazine.cointelegraph.com/magazine/wp-content/uploads/2024/10/Digest_25-10_1-1024×682.png)
## FUD of The Week
### Jailed crypto scammers blew stolen funds on shark tank, hookers: Report
Five individuals were sentenced to prison for their involvement in a $21.6 million crypto fraud, where they reportedly used the stolen money to buy a shark tank, take private jet rides, hire sex workers, and purchase a luxury car.
The criminals managed to collect $21.6 million (20 million euros) from approximately 40,000 investors through various investment schemes, such as the EXW Wallet and the EXW crypto token, as reported by Austrian news outlet Heute on October 23.
Two of the defendants received a five-year sentence, two were sentenced to 30 months, and one received 18 months in prison. While five others were acquitted, some are still evading authorities.
The trial at the Klagenfurt Regional Court was the largest in Austrian history, with Judge Claudia Bandion-Ortner issuing the sentences on October 23 after two months of trial and 300 hours of negotiations.
The fraudsters lived a lavish lifestyle, resembling a Hollywood movie, partying at exclusive clubs in Dubai and traveling between cities in private jets. They even purchased a shark tank for a villa, located in Bali according to news and review site BehindMLM.
### Radiant Capital hacker moves $52M in stolen funds
The hacker responsible for the recent theft from decentralized finance protocol Radiant Capital has transferred nearly all of the stolen funds from layer-2 protocols to Ethereum in an attempt to conceal their whereabouts.
Blockchain security firm PeckShield reported on October 24 that addresses linked to the Radiant Capital exploiter had moved almost all the ill-gotten crypto from the exploit from layer-2 network Arbitrum and the Binance BNB Chain to the Ethereum network.
The total amount transferred was around 20,500 Ether, equivalent to $52 million, according to PeckShield.
### Lazarus Group exploited Chrome vulnerability with fake NFT game
The North Korean hacker group Lazarus Group utilized a fake blockchain-based game to exploit a zero-day vulnerability in Google’s Chrome browser and install spyware to steal wallet credentials. Kaspersky Lab analysts discovered the exploit in May and reported it to Google, which has since patched the vulnerability.
The multiplayer online battle arena game promoted on LinkedIn and X, called DeTankZone or DeTankWar, was fully functional and used non-fungible tokens as tanks in a global competition.
Users were infected with spyware from the website, even without downloading the game, which was modeled after the existing DeFiTankLand.
![Image description](https://s3.magazine.cointelegraph.com/magazine/wp-content/uploads/2024/10/Digest_25-10_3-1024×682.png)
## Magazine Stories of The Week
### The rise of Mert Mumtaz: ‘I probably FUD Solana the most out of anybody’
Solana’s most prominent advocate, Mert Mumtaz, played a significant role in the blockchain’s resurgence. He is not a maximalist when it comes to SOL.
India is considering a new crypto ban to support CBDC, while the Lazarus Group strikes again in the latest Asia Express news.
A strange cult is emerging around AI-created memecoin ‘religions,’ as discussed in the AI Eye article. Are these beliefs genuine or just a meme? Some professors predict that the AI bubble is on the verge of bursting.
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Author: Editorial Staff – Cointelegraph Magazine writers and reporters contributed to this article. Paragraph 1: The new restaurant in town serves delicious Italian cuisine. The chef uses fresh ingredients and traditional recipes to create authentic dishes that are sure to please any palate.
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