Bitgo Obtains $100M Insurance Policy to Cover Crypto Assets

figmentofmyass

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Quote from: avikz on February 20, 2019, 03:40:43 PM

Coinbase is insured against hacks and any possible threats. Read their blog post regarding this,

https://support.coinbase.com/customer/portal/articles/1662379-how-is-coinbase-insured-

that's not entirely true.

if you read closely, coinbase obtained insurance for its online crypto storage. according to them, that means "less than 2% of customer funds". so let's say there was an inside job that compromised the cold storage. the theft of cold storage funds would not be covered!

they do have FDIC insurance for USD deposits and possibly equivalent insurance for other fiat currencies. but the bulk of their crypto storage is not insured. it would probably be prohibitively expensive to ensure all their customer deposits.

LeGaulois

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Top Crypto Casino

Up to 100 million per customer or per company (BitGo)
Because if it's not 100mln per customer then it's not a lot. Bitgo clients manage multiple millions, even to get a business wallet you need at least 1 million$ monthly transaction

gentlemand

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Welt Am Draht

Quote from: CoinChapter on February 20, 2019, 02:49:30 PM

This is the first exchange that I have seen get insurance coverage to cover hacks, thefts and loss of keys. (I bet Quadrigax wish they had this...)

If we take Quadriga's word on this then I'll bet the insurance would not pay out had they been insured. They would not insure an arrangement that depended on one asshole rummaging through his shoebox to get his paper wallets. They would treat that as incompetence and tell them to whistle for it.

Insurance is not a magic bullet. To get the payout you're going to have to satisfy their conditions. Bitpay lost a million dollars when an employee clicked on an email link. Bitpay attempted to claim. They were told it was down to their human error so no dice.

I wouldn't feel completely reassured by anywhere claiming to be insured. No crypto policy has been put to the proper test.

magneto

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Quote from: CoinChapter on February 20, 2019, 02:49:30 PM

This is the first exchange that I have seen get insurance coverage to cover hacks, thefts and loss of keys. (I bet Quadrigax wish they had this...)

https://coinchapter.com/bitgo-obtains-100m-insurance-policy-to-cover-crypto-assets/

Although I would have to think that Coinbase has this type of coverage.

Anyone know of other exchanges that are insured?

Or, instead of trusting these third parties to hold your funds safely just use a trustless wallet. Much less hassle.

Wasn't BitGo somehow related to the Bitfinex hack that happened a while back? That hack had around $60 million stolen, which means that BitGo likely holds much more funds than the $100M insurance that they've taken out.

Also, it's important to understand that having insurance doesn't mean they will actually redistribute all funds from the insurance (if a claim ever happens) to customers. They will have the final say on who gets reimbursed and who doesn't. Another reason to stick to trustless wallets that only you have access to, of course, with sufficient security.

Ains_sama

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with this insurance guarantee in exchange is very good, I am sure that in this way it will ensure the use of crypto is safer and more comfortable.

mrdeposit

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Quote from: CoinChapter on February 20, 2019, 02:49:30 PM

This is the first exchange that I have seen get insurance coverage to cover hacks, thefts and loss of keys. (I bet Quadrigax wish they had this...)

https://coinchapter.com/bitgo-obtains-100m-insurance-policy-to-cover-crypto-assets/

Although I would have to think that Coinbase has this type of coverage.

Anyone know of other exchanges that are insured?

I am not sure, how exchange management will convince insurance company if such case gonna be actual. For example, finding hacker group and paying them for hacking their own exchange after giving vulnerable gaps on site. Maybe someone can explain how does this mechanism work?

avikz

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Coinbase is insured against hacks and any possible threats. Read their blog post regarding this,

https://support.coinbase.com/customer/portal/articles/1662379-how-is-coinbase-insured-

Also I know another exchange called CGCX is also insured against any possible hacking threats. They are based out of Singapore. Even though they are not big enough but the funds are insured.

I am sure there are more insured exchanges are available as it has become a very important parameter to start a crypto exchange.

CoinChapter

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coinchapter.com

This is the first exchange that I have seen get insurance coverage to cover hacks, thefts and loss of keys. (I bet Quadrigax wish they had this...)

https://coinchapter.com/bitgo-obtains-100m-insurance-policy-to-cover-crypto-assets/

Although I would have to think that Coinbase has this type of coverage.

Anyone know of other exchanges that are insured?

Topic: Bitgo Obtains $100M Insurance Policy to Cover Crypto Assets (Read 143 times)