Bittrex, the cryptocurrency exchange, obtained $300 million in digital asset insurance against theft or collusion for the cryptocurrency it holds in cold storage.
Bittrex Secures $300 Million Insurance for Cryptocurrencies in Cold Storage https://t.co/kCa3jVX1GJ via @cointelegraph pic.twitter.com/CGps8QI6mo — MOJO DAY TRADING (@ProTrader_Mike) January 30, 2020
On January 29, Bittrex announced in a blog post that the exchange obtained specialty insurance for corporations by insurance firm Lloyd’s of London after working with a major insurance broker and adviser Marsh.
Sarah Downey, the co-leader of Marsh’s digital asset risk transfer team, said:
“We worked closely with Bittrex to create a tailored insurance solution to fit their specific cryptocurrency needs.”
However, this is not the first crypto deal for Lloyd’s, as in late August 2018 the firm started insuring crypto custodian Kingdom Trust.
In April 2019, the company also started insuring the hot wallets of crypto exchange Coinbase.
It has been analyzed that Bittrex reportedly obtained the insurance after demonstrating its internal security and compliance protocols.
Thus, Bill Shihara, the CEO of Bittrex, explained that insurance is another layer on top of actual exchange security that provides an additional guarantee for its customers.