The Bittrex Crypto Exchange received as much as $300 million for digital preservation. This concerns the theft of the cryptocurrencies, which the platform stores in cold wallets.
Bittrex reported via its blog, on January 29th, that the stock exchange has received special insurance for the company. The insurance company is Lloyd, based in London, which cooperates with the main insurance brokerage company Marsh. Marsh Sarah Downey, expert in digital asset transfer, said:
This is not a Bittrex debut
This isn’t the first crypto contract Lloyd’s made. The company started to insure the crypto-depository of the Kingdom Trust in late August 2018. In April 2019, it also insured hot wallets on Coinbase crypto-depositories. After observations, it can be assumed that Bittrex took out the insurance after internal security and compliance logs were made available.
The CEO of the exchange, Bill Shihara, said that the insurance provides an additional level of security for the exchange systems, in addition to the actual security of the platform, which provides an additional guarantee for customers who decide to use its services. Cryptocurrency insurance is considered to be one of the most complex security processes. This is due to the high risk of crypto resources management.
At the beginning of this month, Gemini, the stock exchange director, told Cointelegraph that the company has opened its own insurance company to cover losses of $200 million. Recently, an insightful article has been published, which considers the need to insure the cryptocurrencies stock exchanges.
The author of the article, who is Cointelegraph, also explains that cryptocurrency insurance is a prerequisite for attracting more institutional investors and explains why. In Gemini’s case, it is expected that the new insurance will help the stock exchange to meet the regulatory requirements that are necessary to serve institutional clients.
Briefly about Bittrex
Bittrex is one of the largest and most popular crypto exchanges in the world. It is based in Las Vegas. With their help, customers can exchange up to 190 digital currencies, which is a truly impressive result and gives users an extremely wide range of possibilities. This is probably the reason why it is growing so fast and users are happy to use it.
The platform supports both the Fiats, such as EUR, USD, GBP and PLN, and the controversial USDT stablecoin, which is a kind of substitute for the US dollar in a world of virtual currencies. Tethering should not differ significantly from 1 USD. However, like the whole stock exchange, this project arouses considerable controversy among users all over the world.