TechFlow news, on October 25, according to Cointelegraph, the U.S. Fourth Circuit Court of Appeals ruled to uphold the decision of the District Court in Virginia, dismissing homeowner Ali Sedaghatpour's insurance claim against Lemonade Insurance Company. Sedaghatpour had sought compensation through his homeowner’s insurance policy after suffering a $170,000 loss from a cryptocurrency scam.
The three appellate judges unanimously held that under Virginia law, "direct physical loss" requires evidence of present or imminent substantial destruction or significant harm. The judges stated: "Because digital theft of cryptocurrency does not constitute 'direct physical loss,' the policy provision does not apply to Sedaghatpour's cryptocurrency losses."
