Samourai Wallet Guilty Plea Signals a New Era of Enforcement Risk
The prosecution of Samourai Wallet co-founders Keonne Rodriguez and William Lonergan Hill exposed critical, infrastructure-level risks in the crypto sector. The founders pleaded guilty to operating a money-laundering service that processed over $200 million in criminal proceeds, deliberately marketing to users involved with fraud, cybercrime, and dark-web activities.
This case has significant implications for all crypto-infrastructure providers. Regulators are increasingly targeting providers seen as ‘intentional enablers’ of financial crime, making it critical to demonstrate compliance with AML/KYC standards. Investor expectations now make robust compliance a competitive differentiator.
Implications for brokers and their clients:
- With stricter oversight, there may be heightened risk of shareholder and investor claims alleging negligence. Review whether D&O coverage explicitly addresses regulatory-driven litigation tied to AML/KYC failures.
- Firms need crime and cyber policies that cover unauthorized use of infrastructure and laundering-related incidents.
- Documented AML frameworks, independent audits, and transaction-monitoring systems improve insurability.
Source: AInvest. (November 4, 2025). Regulatory Risk in Crypto Infrastructure: How Legal Cases Reshape Investor Trust and Market Dynamics.
Growth Without Security: The $150 Billion DeFi Sector’s Hidden Cyber Liability
The decentralised finance (DeFi) sector is valued at around $150 billion but escalating security vulnerabilities threaten its resilience. On 3 November 2025, hackers exploited the Balancer protocol, stealing more than $128 million. Combined with the May 2025 breach of the Cetus Protocol, which resulted in $223 million in losses, these incidents highlight how DeFi platforms continue to prioritise growth over security — even as state-sponsored actors intensify attacks on crypto infrastructure.
In an interview with the Financial Times, Chainalysis CEO Jonathan Levin warned that many DeFi startups lack the capacity to manage complex cyber threats. He noted that even venture-backed projects often under-invest in security and that some of the most prominent protocols contain vulnerabilities easily exploitable by North Korean hackers.
Implications for brokers and their clients:
- Review cyber-insurance policies to confirm they cover digital-asset theft and protocol exploitation.
- Ensure tech E&O policies include protection against smart-contract failure.
- Demonstrate robust security practices to secure favorable terms.
Source: Coinpaper. (November 4, 2025). Chainalysis CEO Warns of Large-Scale Attacks on DeFi Sector.
Agentic $4.4 Trillion in Value – Massive Liability
Agentic AI systems are projected to generate between $2.6 trillion and $4.4 trillion in annual value across more than 60 use cases, spanning customer service, compliance, software development, and supply chain management.
Yet, as adoption accelerates, so do the risks. Eighty percent of organizations report encountering risky behavior from agentic AI, exposing critical gaps in governance and security.
- Operational risk: When multiple agents depend on each other, a defect in one can cascade through the chain, disrupting connected systems and decision flows.
- Data integrity risk: Poor-quality or corrupted data can spread across agent networks, resulting in flawed decisions and compliance breaches.
- Security and identity risk: Malicious or synthetic agents can impersonate trusted systems, escalate privileges, and bypass standard security checks, leaving data transfers unlogged and untraceable.
Traditional cybersecurity frameworks such as ISO 27001, NIST CSF, and SOC 2 were not designed for autonomous decision-making systems, creating new governance gaps. As organizations integrate agentic AI into core operations, insurers will need to consider how autonomous actions reshape liability exposure and coverage design.
Implications for brokers and their clients:
- Review cyber, tech E&O, and professional liability policies to confirm they address autonomous actions.
- Ensure coverage extends to third-party AI agent failures.
- Provide documented evidence of agent governance to improve insurability.
Source: McKinsey & Company. (October 16, 2025). Deploying agentic AI with safety and security: A playbook for technology leaders.
Inconsistent Cannabis Contamination Standards – Are More Recalls on the Horizon?
Across the United States, standards for contaminants in cannabis products vary widely, resulting in inconsistent testing oversight. States independently determine which substances must be screened for, including pesticides, heavy metals, mold, microbial contamination, and solvent residues.
Research from Arizona State University found that more than 600 contaminants are regulated across 30 states, yet each jurisdiction covers only 60 to 120. As scientific evidence around health impacts evolves, testing requirements are expected to tighten. In California, recalls rose sharply — from four in 2023 to over 60 in 2024 — prompting closer scrutiny from regulators and insurers as contamination-related claims increase.
Implications for brokers and their clients:
- Work with insurers specializing in cannabis-sector regulation, ensuring coverage extends to contamination-related recalls and customer harm claims.
- Confirm policies address regulatory actions arising from contamination findings and product recalls.
- Ensure robust product liability policies are in place in case of customer claims of harm.
Source: NPR. (February 3, 2025). How safe is your weed? Patchy regulations may leave contaminants in the weed supply.
NJ and Spain Crack Down on Gambling Operator Responsibility
New Jersey has proposed new responsible-gaming trigger rules, with public comments due by November 14, 2025. The measures would require online operators to carry out due-diligence interventions when players meet specific risk criteria — including certain deposit thresholds, multiple cool-off requests within 45 days, or rapid increases in responsible-gaming limits.
In Spain, the Directorate General for Gambling has launched a public consultation, closing on November 26, 2025, on revised warning messages for gambling advertising. The initiative replaces the long-standing ‘If you play, play responsibly!’ slogan with clearer messaging emphasizing addiction risk and loss probabilities.
Implications for brokers and their clients:
- Ensure D&O policies explicitly cover regulatory investigations tied to duty-of-care obligations.
- Review E&O policies to confirm protection against negligence claims related to monitoring or intervention failures.
- Consider media-liability coverage to address disputes arising from advertising or disclosure non-compliance.
Source: VIXIO. (November 1, 2025). Gambling Regulatory Deadlines to watch in November 2025.
Monopolization in Biotech: Pfizer-Metsera-Novo Nordisk Merger Litigation
Pfizer has filed multiple lawsuits against Metsera and Novo Nordisk, alleging breach of contract, breach of fiduciary duty, and federal antitrust violations under the Sherman Act. The company claims the proposed Novo Nordisk–Metsera transaction is an attempt by a dominant player to suppress competition through a structure designed to evade antitrust review.
Metsera has dismissed the allegations as unfounded, stating that Pfizer is “trying to litigate its way to buying Metsera for a lower price than Novo Nordisk.” The dispute underscores growing competition and consolidation pressures across the biotech sector and the regulatory scrutiny that accompanies high-value mergers and acquisitions.
Implications for brokers and their clients:
- Representations and Warranties insurance or similar transactional coverage protect buyers and sellers from financial losses if disputes arise about what was disclosed during the deal process.
- Antitrust allegations can attract regulatory scrutiny. Verify that policies include coverage for legal defense costs tied to government investigations and do not exclude antitrust matters.
- High-profile biotech lawsuits often trigger negative press. Consider coverage for PR support and reputation rehabilitation costs.
Source: Pharmaceutical Executive. (November 3, 2025). Pfizer Files Lawsuits Against Metsera and Novo Nordisk.
