Bittrex insured its digital assets held in the cold storage to up to $300 million which is the highest coverage that was yet offered by a crypto exchange so let’s read more about it in today’s crypto news.
The company announced the news earlier today saying that it has obtained digital asset insurance that will protect the users’ holdings if an external theft and internal collision happens. The CEO of Bittrex, Bill Shihara said that the cover has a limit of up to $300 million and offers a ‘’peace of mind’’ and will show the clients that the exchange is ‘’committed to prioritizing security throughout all of the decisions and forward-looking blockchain technologies.’’
Bittrex insured the funds underwritten by Arch Syndicate in 2012 which provides specialized insurance for bigger companies. The policy was approved right after the exchange demonstrated the internal security and compliance protocol and got support from other syndicates that were based out of London which is the world’s largest insurance market. Regarding the external theft, this means that a theft via a physical intrusion into Bittrex’s crypto vault as the cold wallets are not prone to hacking. The cover could be similar to the one of Arch’s blue vault which provides limits of up to $150 million and covers the loss of cryptocurrencies because of internal and external theft by including employee collusion.
The co-leader of the digital asset risk transfer team at Marsh, Sarah Downey, the insurance broker that helped Bittrex with the creation of the policy said:
“Insurance plays a critical role in the growth and development of any business, including those that work with blockchain technology and digital assets.”
The insurance coverage is a growing trend among the businesses that hold the cryptocurrencies of the users. custodial solution KNOW has insurance that is also from Lloyd’s covering up losses of up to $100 million. The Winklevoss brothers even created their own insurance company in order to guarantee losses up to $200 million for the Gemini exchange users. Coinbase even held the record for the largest insurance coverage in crypto, insuring up to $255 million for digital assets that were held in the exchange’s hot wallets.
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