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Cryptocurrency exchange Coinbase is the latest victim in what has been a significant series of hacks in 2021. The world’s second largest cryptocurrency exchange disclosed that 6,000 accounts were compromised with Bitcoin successfully being stolen from them. A flaw with the exchange’s two-factor authentication system (2FA) is being blamed.
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Coinbase carries crime insurance that protects a portion of digital assets held across our storage systems against losses from theft, including cybersecurity breaches. However, our policy does not cover any losses resulting from unauthorized access to your personal Coinbase or Coinbase Pro account(s) due to a breach or loss of your credentials. It is your responsibility to use a strong password and maintain control of all login credentials you use to access Coinbase and Coinbase Pro.
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How is Coinbase Insured? Since November 2013, Coinbase has insured user funds through Aon , the world’s largest insurance broker. Furthermore, on the exchange’s support page it’s clearly stipulated that amounts up to $250.000 are insured and will be returned to customers in the event of a hacking or failure.
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Coinbase is technically FDIC insured, but it does get a little complicated. Technically FDIC insurance covers up to $250,000, and Coinbase is one of the only exchanges to have FDIC insurance. This does not mean your cryptocurrency is insured! Only deposits made in USD to your USD wallet in Coinbase are insured.
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Coinbase carries crime insurance that protects a portion of digital assets held across our storage systems against losses from theft, including cybersecurity breaches. However, our policy does not cover any losses resulting from unauthorized access to your personal Coinbase or Coinbase Pro account (s) due to a breach or loss of your credentials. It is your responsibility to use a strong password and maintain control of all login credentials you use to access Coinbase and Coinbase Pro.
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Our custodial accounts have been established in a manner to make available pass-through FDIC insurance up to the per-depositor coverage limit then in place (currently $250,000 per individual). FDIC pass-through insurance protects funds held on behalf of a Coinbase customer against the risk of loss should any FDIC-insured bank(s) where we maintain custodial accounts fail.
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Coinbase accounts and balances are secured as follows. “Coinbase prioritizes the security of our customer's funds, all digital currency that Coinbase holds online is insured. If Coinbase were to suffer a breach of its online storage, the insurance policy would pay out to cover any customer funds lost as a result.
Whatsmore, Coinbase has covered its customers’ deposits up to $250,000 per account through FDIC insurance. However, this coverage only applies to U.S. customers holding U.S. Dollar deposits. Furthermore, crucially the insurance does not cover crypto assets. Create Coinbase account Coinbase wallet’s security
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