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Crypto security company BitGo is making good on plans to facilitate insurance for digital assets by providing $100 million of cover against theft or the loss of cryptographic keys via the Lloyd’s of London insurance market.
The announcement comes in the wake of the QuadrigaCX debacle, where the exchange announced it could not access its cold storage wallets following the death of its founder and CEO, Gerald Cotten, as he was the only company employee to know its private keys.
Custodial assets held in BitGo business wallets or in its qualified custodian arm, BitGo Trust Company, will be covered against third-party hacks or the theft of private keys; insider theft by employees of private keys; and physical loss or damage of private keys, the company said.
BitGo said last year that it was looking to secure insurance for its customers’ assets.
In an unusual move, BitGo named one of the Lloyd’s underwriters involved – AmTrust. The cold storage of crypto assets is a natural fit for the so-called specie insurance market, which provides cover for things like vaulted bullion, art and other treasures.
BitGo’s Lost Key Cover is being offered by Digital Asset Services, an insurance provider overseen by U.K. regulator the Financial Conduct Authority.