Curv, a crypto securities company, entered a pact with Munich Re, an insurance company, to provide insurance coverage of $50 million to the cryptocurrency investors. The insurance safeguards the investors from any fraudulent activity because of an illicit transaction or a hack on the exchange. The insurance covers fraudulent access to the shares of customers and compromising activity on the exchange.
No use of private keys
Curv do not use the private keys for its crypto wallets. Therefore, it prevents hackers attempt to steal the customers crypto coins. According to the senior security analyst at ISE (Independent Security Evaluators), Adrian Bednarek the blockchain bandits steal Ethereum (ETH) of customers using the private keys. The weak private keys expose the password and user ID of the customers and provide access to the hackers for fraudulent transactions.
Multi-Party computation protocols
Curv uses MPC (multi-party computation) protocols that do not depend on just password and username of the customer to provide access to the data. It also offers omni-purpose wallet, which is safe when compared to hot or cold wallets.
According to CoinTelegraph, Coinbase, a major cryptocurrency exchange in the US, secured insurance coverage for hot wallets. It provides an insurance coverage of up to $255 million for a loss caused because of fraudulent activity.
Bitgo’s $100 million insurance coverage
Bitgo, a service provider of cryptocurrency wallet, entered a deal with Lloyd Insurance to provide insurance coverage worth $100 million for the customers. The largest insurance provider Lloyd Insurance has a presence in over 200 nations worldwide. The insurance policy covers the custody offerings, and the cryptocurrencies held in the business wallet. It also covers thefts caused because of insider employees, hacks and compromised private keys.
The custodial services of Bitgo account for over $2 billion worth digital assets. The business wallet customers of Bitgo can now purchase key recovery service (Lost Key Cover) and theft insurance from an insurance provider – Digital Asset Services. The financial services regulator based in the UK oversees the acts of Digital Asset Services. The customers requiring insurance can either subscribe to an annual package or when needed.
CEO of Bitgo, Mike Belshe said it offers the comprehensive insurance to the customers compared to its peers in the industry.
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