Is Litecoin (LTC) Up, Adds $2.7 Billion in 18 Hours

CoinBase, the US exchange valued at over $8 billion is unique because it is hacker—proof—no recorded breach since launch. They assure clients that their priority is security “for Your Peace of Mind.” To that end, the team tasked with storing user assets has “98 percent of customer funds in cold wallets.” Additionally, CoinBase “distribute Bitcoin drives and paper backups geographically in safe deposit boxes and vaults around the world.”

According to Philip Martin, the chief information security officer at CoinBase, the exchange has taken upon themselves to insure their hot wallets. The plan which CoinBase has been subscribing to since Nov 2013 after purchasing it from Lloyd’s of London covers up-to $255 million just in case there is an unfortunate hack:

“We currently hold a hot wallet policy with a $255 million limit placed by Lloyd’s registered broker Aon and sourced from a global group of US and UK insurance companies, including certain Lloyd’s of London syndicates. The rationale has remained the same the entire time: if the worst happens and CoinBase loses customer funds, customers deserve certainty that they will be made whole. Data is clear that today, the most likely consumer loss scenario for any cryptocurrency company is hot wallet loss due to hacking.”


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