Coinbase Insured

[BitsBitsBits]

This is great news! Especially considering all the small vendors that are starting to use bitcoin as payment and use coinbase as an exchange and wallet.

[1714521984]

1714521984

[unexecuted]

Interesting. It's good to see Coinbase setting the standard here. Of course, employee infidelity and hacking are just two ways that bitcoins could disappear.

What about physical theft? Summary says that the insurance covers losses due to physical security breach, so presumably physical theft is covered. Missed that in the summary.
What about natural disasters, fire, flood, etc.?
What about kidnap/ransom/extortion of employees?
What about lawful confiscation (usually not covered by policies)?
What are the actual limits of the policy?
Are the limits on a per-account basis (like the FDIC), per occurrence basis, or per policy period?
Was the policy designed to cover the type of hacking that allegedly occurred with Mt. Gox?

[illymoka]

"Coinbase is insured against theft and hacking in an amount that exceeds the average value of bitcoin we hold in online storage at any given time."

Yet elsewhere you claim that only 3% of deposits are online, so 97% of deposited bitcoin are uninsured.
Are we supposed to pretend that the 97% offline have zero risk of theft? If that was true why aren't those 97% insured also?
Wow. Sneaky.

[PenAndPaper]

That is a very positive development and coinbase is definetely one of the best companies in bitcoin.
Still i wouldn't consider online wallets for long term storage of big amounts of bitcoins.

[Bitcoinpro]

They have not provided a copy of their insurance contract and if their is a flash crash

on their own servers which they are in control and could even spread to other exchanges what

price will they payout, i would suggest the highest of all the 30-60-90 averages including

subset averages begging certain time frames before any events started unfolding,

if the price was to run down one week or one month before they declared an insurance cover

then the average price should be calculated before the price rundown, these tactics where

used very successfully up to 2-3 months before its was completely obvious mtgox was about

to go bankrupt.

[StatusSeeking]

wonder if by "online storage" they mean the percentage they keep available to trade (didn't they say this is like 3% or something?), or their cold storage wallets.

[BitCoinDream]

They are insured, NOT their customers. I have made the exit strategy bold. Moreover, what would happen for an address collision is not clear.

When does ANY exchange insure lost bitcoins for an individual's own negligence? If they do insure these types of lost btc, then it's open for a lot of abuse. It's the equivalent of a chargeback.

On the contrary, this clause can be used to give all the responsibility on customer for gross negligence.

[oceans]

I'm seeing this as it being them who are insured not their customers which means it's a good thing but not in terms of their customers who really could do with some kind of insurance for times when they fall to any bad losses. Hopefully in time something will be implemented.

[LiteCoinGuy]

to all noobs:

It doesn’t cover bitcoin lost or stolen as a result of an individual user’s negligence to maintain secure control over their login credentials.

[Bitcoinpro]

I'm seeing this as it being them who are insured not their customers which means it's a good thing but not in terms of their customers who really could do with some kind of insurance for times when they fall to any bad losses. Hopefully in time something will be implemented.

We can speculate alot we need to see the insurance contract and how does it refer to the clients

in reality the client should be able to make a claim directly to the insurance company for this

to be of any benefit.

[PalmerLaura]

Interesting. It's good to see Coinbase setting the standard here. Of course, employee infidelity and hacking are just two ways that bitcoins could disappear.

What about physical theft? Summary says that the insurance covers losses due to physical security breach, so presumably physical theft is covered. Missed that in the summary.
What about natural disasters, fire, flood, etc.?
What about kidnap/ransom/extortion of employees?
What about lawful confiscation (usually not covered by policies)?
What are the actual limits of the policy?
Are the limits on a per-account basis (like the FDIC), per occurrence basis, or per policy period?
Was the policy designed to cover the type of hacking that allegedly occurred with Mt. Gox?

Setting the standard for what, deception? 97% of deposits are offline and therefore uninsured.

[CoolBliss]

Google "Meridian Global Insurance Limited" Xapo's insurance company, see what turns up... http://help.xapo.com/questions/89743-Is-Xapo-insured-by-a-third-party-insurance-company

[logger]

Interesting. It's good to see Coinbase setting the standard here. Of course, employee infidelity and hacking are just two ways that bitcoins could disappear.

What about physical theft? Summary says that the insurance covers losses due to physical security breach, so presumably physical theft is covered. Missed that in the summary.
What about natural disasters, fire, flood, etc.?
What about kidnap/ransom/extortion of employees?
What about lawful confiscation (usually not covered by policies)?
What are the actual limits of the policy?
Are the limits on a per-account basis (like the FDIC), per occurrence basis, or per policy period?
Was the policy designed to cover the type of hacking that allegedly occurred with Mt. Gox?

but "The insurance covers losses due to breaches in physical or cyber security and employee theft."

[AllYouCanDo]

but "The insurance covers losses due to breaches in physical or cyber security and employee theft."

U dont want crazy karpeles bs goin on

[Bizzaran]

Interesting. It's good to see Coinbase setting the standard here. Of course, employee infidelity and hacking are just two ways that bitcoins could disappear.

What about physical theft? Summary says that the insurance covers losses due to physical security breach, so presumably physical theft is covered. Missed that in the summary.
What about natural disasters, fire, flood, etc.?
What about kidnap/ransom/extortion of employees?
What about lawful confiscation (usually not covered by policies)?
What are the actual limits of the policy?
Are the limits on a per-account basis (like the FDIC), per occurrence basis, or per policy period?
Was the policy designed to cover the type of hacking that allegedly occurred with Mt. Gox?

but "The insurance covers losses due to breaches in physical or cyber security and employee theft."

It's good to know that they are covered in the event of someone stealing their employees.

[Drendas]

Interesting. It's good to see Coinbase setting the standard here. Of course, employee infidelity and hacking are just two ways that bitcoins could disappear.

What about physical theft? Summary says that the insurance covers losses due to physical security breach, so presumably physical theft is covered. Missed that in the summary.
What about natural disasters, fire, flood, etc.?
What about kidnap/ransom/extortion of employees?
What about lawful confiscation (usually not covered by policies)?
What are the actual limits of the policy?
Are the limits on a per-account basis (like the FDIC), per occurrence basis, or per policy period?
Was the policy designed to cover the type of hacking that allegedly occurred with Mt. Gox?

Setting the standard for what, deception? 97% of deposits are offline and therefore uninsured.

True. Policy limits on the hot wallets probably aren't more than a few million.
If cold storage is as safe as Coinbase claims, then it should be able to get a separate policy on the cold storage for a much lower premium per dollar of policy limits.

[wasserman99]

to all noobs:

It doesn’t cover bitcoin lost or stolen as a result of an individual user’s negligence to maintain secure control over their login credentials.

This message should also be addressed to scammers as I am sure that coinbase likely received at least 100 claims that bitcoin was "stolen" out of their account.

[AriceInWonderland]

Interesting. It's good to see Coinbase setting the standard here. Of course, employee infidelity and hacking are just two ways that bitcoins could disappear.

What about physical theft? Summary says that the insurance covers losses due to physical security breach, so presumably physical theft is covered. Missed that in the summary.
What about natural disasters, fire, flood, etc.?
What about kidnap/ransom/extortion of employees?
What about lawful confiscation (usually not covered by policies)?
What are the actual limits of the policy?
Are the limits on a per-account basis (like the FDIC), per occurrence basis, or per policy period?
Was the policy designed to cover the type of hacking that allegedly occurred with Mt. Gox?

Setting the standard for what, deception? 97% of deposits are offline and therefore uninsured.

Exactly - cold storage is not insured. I am not impressed at all.

[knifeedge]

Interesting. It's good to see Coinbase setting the standard here. Of course, employee infidelity and hacking are just two ways that bitcoins could disappear.

What about physical theft? Summary says that the insurance covers losses due to physical security breach, so presumably physical theft is covered. Missed that in the summary.
What about natural disasters, fire, flood, etc.?
What about kidnap/ransom/extortion of employees?
What about lawful confiscation (usually not covered by policies)?
What are the actual limits of the policy?
Are the limits on a per-account basis (like the FDIC), per occurrence basis, or per policy period?
Was the policy designed to cover the type of hacking that allegedly occurred with Mt. Gox?

Their statement is actually very vague and very limited. I wouldnt rely on this insurance.... And especially since coinbase is staying very quite about the bitlicense ordeal, Im starting to put less and less trust in them. I dont even use their service anymore and am eagerly waiting for my circle invite.

[littlebeetle]

Their statement is actually very vague and very limited. I wouldnt rely on this insurance.... And especially since coinbase is staying very quite about the bitlicense ordeal, Im starting to put less and less trust in them. I dont even use their service anymore and am eagerly waiting for my circle invite.

What does Circle's insurance information say?