What is NEXO’s insurance?

Nexo use BitGo (https://www.bitgo.com/) as their cold storage provider. This includes a $100m (Update: now $250m) policy that covers third-party hacks, theft, loss of keys, etc.

The safety of clients funds is the main priority for Nexo. Cold storage Wallets are provided by BitGo, the leader in digital asset financial services. BitGo Custody carries $250,000,000.00 in insurance protections through a syndicate of underwriters through the Lloyd’s, the world’s specialist insurance and reinsurance market. And this premium service comes in at no additional cost (details can be found here and here).

The $250 million policy covers digital assets where the private keys are held 100% by BitGo in the event of:

  • Third-party hacks, copying, or theft of private keys
  • Insider theft or dishonest acts by BitGo employees or executives
  • Loss of keys

Nexo has chosen BitGo as its custodian because BitGo provides 100% cold storage technology in bank-grade Class III vaults and the BitGo platform is SOC 2 Type 2 certified. Advanced authentication mechanisms are employed to ensure the authenticity of data, and assets are distributed geographically and organisationally.

It is the account holders’ responsibility to safeguard their accounts by means including but not limited to using a strong password, enabling two-factor authentication and controlling all login credentials to Nexo. Clients remain owners of the crypto assets placed into Nexo accounts.

Nexo recently partnered with Ledger, bumping up Nexo’s total insurance portfolio to 375.000.000 (Update: now $775,000,000) USD. The Vault insures digital assets for up to $150 million through a customized insurance program backed by Arch and Marsh. This upgrade is a part of Nexo’s broader plan to increase our insurance to over $1B in 2021 via a syndicate of leading insurers (details can be found here: https://nexo.io/blog/nexo-security-infrastructure-grows-with-ledger-vault-partnership).

Nexo also recently partnered with Bakkt. Bakkt is a trusted digital asset platform providing Nexo with Bitcoin and Ethereum custody in the Bakkt Warehouse, the company’s regulated custodian, which comprises both online (warm) and air-gapped (cold) digital asset storage to minimize risks. For extra protection, Bakkt’s wallets are covered by an insurance policy from a leading global carrier.

Check out their full article on security and insurance here: https://support.nexo.io/hc/en-us/articles/360017628093-Security-and-Insurance

Source: Nexo Security And Insurance
August 21, 2022
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