Bittrex exchange gets $300M worth of insurance cover for its cold storage system
January 30, 2020, 4:00AM EST
1 min read
U.S.-based crypto exchange Bittrex has secured insurance coverage of up to $300 million.
The coverage will help protect crypto assets held in Bittrex’s cold storage system, according to an announcement Wednesday. Cold storage refers to keeping private keys on a hardware device, disconnected from the internet.
Bittrex’s policy was placed through insurance brokerage giant Marsh and was led by Lloyd's Arch Syndicate 2012, per the announcement. Bittrex said it was approved for the coverage “after successfully demonstrating the exchange’s extensive internal security and compliance protocols.”
“We worked closely with Bittrex to create a tailored insurance solution to fit their specific cryptocurrency needs,” said Sarah Downey, co-leader of Marsh’s Digital Asset Risk Transfer (DART) team.
Bittrex’s extent of coverage is possibly record-breaking. Earlier this month Gemini exchange created its own insurance company with coverage of $200 million for its cold storage. Coinbase, on the other hand, has $255 million in coverage for assets held in hot or online wallets.