Early Bitcoin adopters the Winklevoss brothers, famous for their early involvement with Facebook, have just announced the launch of their new crypto insurance company dubbed Nakamoto Ltd.
Why would anyone need online currency insurance? Well an estimated $500m worth was stolen from a Japanese crypto coin exchange in 2019. Bigger companies, and even insurers, are looking into the value of investing money in crypto currencies – in short, it’s a complicated risk because of hackers, the constantly changing cyber threats out there, and the loosely regulated nature of the crypto product and its recent rapid growth.
The twins, who run the highly successful Gemini cryptocurrency exchange, claim that Nakamoto is “the world’s first captive to insure crypto custody”
The captive will cover losses for clients of Gemini Custody up to a maximum of $200 million.
Here’s the press release from Gemini;
Gemini customers can now also purchase additional insurance for their segregated crypto assets. In addition, we have Hot Wallet insurance coverage for your crypto we hold in our online Hot Wallet. Lastly, U.S. dollar deposits held at Gemini are eligible for FDIC “pass through” deposit insurance.
Insurance is essential to the health and growth of modern financial markets and we’re proud to bring insurance to the crypto markets — a critical next step on our mission — to empower the individual through crypto.
Gemini Custody™ is regulated by the New York State Department of Financial Services (NYDFS) and is SOC 2 Type 1 compliant. For more information on Gemini Custody™ or our custody insurance solution please reach out to firstname.lastname@example.org.