BitGo Will Ensure Customers’ Crypto Wallets for $100 million
Crypto company BitGo will allocate $100 million for ensuring clients' crypto wallets from hacker’s attacks and losing private keys. Lloyd Bank will underwrite insurance.
is going to ensure the business cryptocurrency wallets. Clients will be able to claim damages if hackers will find a breach in wallets’security or someone steals clients’ private keys, or if the user will lose access to the wallet.According to BitGo, the company
The intermediary in this insurance scheme will be Lloyds Bank. BiGo claims that this will allow for the first time in the crypto industry to provide businesses with fully legal and regulated insurance of crypto active assets.
Customers will be able to take out insurance by purchasing an annual subscription.
In early 2019, Gerald Cotten, the CEO of the Canadian Quadriga crypto exchange, died and took with him access to the wallets of the platform, where clients' money was kept. As a result, users lost over $145 million in cryptocurrency.