Today, Bittrex, Inc., a leading US based blockchain technology and cryptocurrency exchange, announced that the company obtained digital asset insurance for its’ cold storage system to secure named cryptocurrency assets. Bittrex worked closely with Marsh, the world’s leading insurance broker and risk adviser, in placing the coverage with Arch syndicate 2012, which provides casualty and specialty insurance for corporations and supported by various syndicates at Lloyd’s of London. Subject to the full terms, conditions and exclusions the policy will cover up to $300 million in assets in case of external theft and internal collusion.
Recognized industry wide for the security and stability of their platform’s technology, Bittrex, Inc. was approved for the coverage after successfully demonstrating the exchange’s extensive internal security and compliance protocols. Underwriters were further impressed upon learning that a growing number of cryptocurrency exchanges around the world are also built on Bittrex, Inc’s best-in-class technology due to their trust in the platform.
“Bittrex focuses on doing the right thing by our customers with security at the top of our mind. This insurance coverage provides another layer of peace of mind,” said Bill Shihara, CEO, Bittrex. “From our institutional customers to hobbyists, we are committed to prioritizing security throughout all of our decisions and forward looking blockchain technologies”
“Insurance plays a critical role in the growth and development of any business, including those that work with blockchain technology and digital assets,” said Sarah Downey, co-leader of Marsh’s Digital Asset Risk Transfer (DART) team. “We worked closely with Bittrex to create a tailored insurance solution to fit their specific cryptocurrency needs. This is the latest example of how Marsh is helping to further advance this burgeoning industry.”
Frequently Asked Questions
Q: What does this cover?
A: Security will always be a top priority in every decision we make. Bittrex employs the most reliable, effective security technologies available. This provides an additional layer of peace of mind and is for Bittrex to recoup the loss of funds in the case of an incident on Bittrex’s internal cold storage custody platform.
Q: Does the $300 million coverage cap pertain to Bittrex as a whole or per individual?
A: This insurance policy will cover up to $300 million in digital assets in case of external theft or internal collusion and applies to Bittrex as an entity.
Q: What does this insurance protect against?
A: This insurance protects Bittrex in the event there was a loss associated with our rigorous internal processes with respect to protecting the wallets in our cold storage environment.