Representatives of cryptocurrency exchanges Coinbase said that the company has an agreement with the insurance broker, covering stealing cryptocurrency from the “hot” wallets for $255 million
“Hot” wallets are wallets that you can access from the Internet, so they may become the target of hacker attacks. Vice-President of the Coinbase security Philip Martin (Philip Martin) noted that only 2% of clients ‘ assets stored in such purses. Other cryptocurrencies are kept in cold wallets, private keys which reside on physical media.
Insurance policy of assets of users appeared in mid-2013, and insurance services are provided by broker Aon, a British insurance market Lloyd.
“Insurance policy provided by the broker Aon and is provided by a group of British and American insurance companies, including some of the syndicates of the Lloyd’s market,” – said Martin.
Vice President of Coinbase, said that the insurance services of “hot” wallets are much more expensive, as the probability of burglary of such vaults is much higher. They can be compared with ATMs or armored cars – the insurers cover theft, physical damage, and so on. Cold wallets are more like Bank vaults, so they are insured against physical damage or loss of private keys.
“Companies should take this into account and to protect the assets from criminal activity. Insurance coverage must be sufficient to cover the UPS and downs of the price of the cryptocurrency,” said Martin.
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