[News] Coinbase insured

[CoinTürk]

According to Coinbase Blog, the company will be insured against theft or loss.

Details: http://coin-turk.com/coinbase-insured/

[wasserman99]

They are only insured against employee theft, or someone stealing from them directly. If someone hacks into your account and withdraws your money then their insurance will not cover this.

If I understand correctly, the insurance only covers the amounts in their hot wallet, the funds in cold storage are not protected by insurance. 

[haploid23]

This means they won't go down like mtgox, but says nothing about you losing your own coins. Btw, this thread is a repost from this one:

https://bitcointalk.org/index.php?topic=759009.0

[Leina]

They are only insured against employee theft, or someone stealing from them directly. If someone hacks into your account and withdraws your money then their insurance will not cover this.

If I understand correctly, the insurance only covers the amounts in their hot wallet, the funds in cold storage are not protected by insurance. 

That should be sufficient if all their customers use two factor authentication.

There is no known method to decode two factor unless the person is negligence on their own smart phone (and storing password on them).

[movelikejagger]

that means that they are waiting for smith...

[ab8989]

"The insurance includes losses by the reason of breaches in physical security, accidental loss, and employee theft"

And of course these are only covered only in the case when one of these has been admitted by the company and proven to have happened. I cannot think of even one case when any of these has been admitted by the company losing funds. It has in most of the cases been network security related issues and outside actors causing purposeful loss of funds and none of those will be covered by the insurance.

Inside job has been suspected to be the real cause of most of the so-called hacks happened before and therefore one would think that this insurance has some meaning, but this is not the case.
There is no chance companies now start to admit and help prove employee thefts if they are performed by the owners or friends of owners because that would mean those responsible would go to prison. They would rather force a haircut of customer funds and continue like nothing happened or alternatively fold altogether just like companies have been doing in the past.

[wasserman99]

They are only insured against employee theft, or someone stealing from them directly. If someone hacks into your account and withdraws your money then their insurance will not cover this.

If I understand correctly, the insurance only covers the amounts in their hot wallet, the funds in cold storage are not protected by insurance. 

That should be sufficient if all their customers use two factor authentication.

There is no known method to decode two factor unless the person is negligence on their own smart phone (and storing password on them).

There have been some people who have reported on here that BTC was withdrawn from their account by hackers despite 2fa being enabled, although I don't personally find them credible (I am 99% sure they are just spreading FUD). There have also been known vulnerabilities with many sites via their API. 

[honolululu]

Are they insured in btc or is usd that will be used to buy replacement btc?  Would be nice if the insurance company already held a supply of bitcoins to pay out claims.