Someone steals your $BTC . The exchange says it has insurance. Who pays?
After seven years working in insurance, my first question would be simple: How did the theft happen?
Take Coinbase as an example. Its crime insurance covers a portion of the crypto it holds against theft, including theft through a breach of its systems. But if someone steals your login details, signs in as you, and empties your account, Coinbase says its crime policy excludes that loss.
That’s why, when I see the words “your assets are protected,” I look for three answers:
1. Who does the policy cover — the exchange, its customers, or both?
2. Which events does it cover — an exchange hack, a stolen login, or both?
3. If thousands of customers lose funds at once, how much insurance is available to pay them back?
If you could ask your exchange just one question, I’d start here: “If someone gets into my account tonight and takes my Bitcoin, where in your terms does it say whether I’ll be reimbursed?”
#Bitcoin #CryptoSecurity #CryptoInsurance #AccountSecurity #BinanceSquare
I may earn rewards from Binance Square for engagement with this post or qualifying trades through its coin tag.
After seven years working in insurance, my first question would be simple: How did the theft happen?
Take Coinbase as an example. Its crime insurance covers a portion of the crypto it holds against theft, including theft through a breach of its systems. But if someone steals your login details, signs in as you, and empties your account, Coinbase says its crime policy excludes that loss.
That’s why, when I see the words “your assets are protected,” I look for three answers:
1. Who does the policy cover — the exchange, its customers, or both?
2. Which events does it cover — an exchange hack, a stolen login, or both?
3. If thousands of customers lose funds at once, how much insurance is available to pay them back?
If you could ask your exchange just one question, I’d start here: “If someone gets into my account tonight and takes my Bitcoin, where in your terms does it say whether I’ll be reimbursed?”
#Bitcoin #CryptoSecurity #CryptoInsurance #AccountSecurity #BinanceSquare
I may earn rewards from Binance Square for engagement with this post or qualifying trades through its coin tag.