In an announcement made earlier today BitGo has confirmed that it has secured insurance for its crypto assets by obtaining a $100 million cover against loss of cryptographic keys or theft. The cover will be provided by the Lloyd’s of London insurance market.
BitGo Becomes The First Major Crypto Firm To Secure Its Client Assets
Its welcome news for all the clients that use the firm to store their assets especially after what happened to QuadrigaCX.
The Canadian exchange shocked the world after announcing that it was unable to access its cold storage wallets after the death of Gerald Cotton who was the CEO and Founder of the exchange. They claimed that Cotten was the only person who knew the private keys.
According to the announcement, custodial assets that are held in BitGo business wallets and also in BitGo Trust Company, its qualified custodial arm will be covered against theft of private keys, third-party hacks, damage or physical loss of private keys and theft of private keys by employees.
Last year BitGo had stated that it was shopping for insurance for its client’s crypto assets. Today’s announcement saw the company mention AmTrust one of the underwriters at Lloyd.
BitGo CEO Mike Belshe noted that the cover was one of the most complete insurance offerings in the industry. Adding:
“It is not always easy for some clients to understand under what circumstances their investments are insured and to what extent their loss would be covered. We are changing that by being more transparent than any other company about the terms of our coverage. Transparency and accuracy is essential for building trust in the market.”
Nicholas Edwards who is the head of fine art & specie at AmTrust was also excited by the partnership. He said the firm was working hard to ensure they tailor an excellent insurance product for BitGo in the new rapidly growing and complex sector.
What’s your take on BitGo taking an insurance policy for its crypto assets? Share your thoughts in the comment section below.