Bitcoin wallet company Xapo has confirmed it is insuring users’ crypto-currency through a captive domiciled in Bermuda.
Xapo subsidiary Meridian Global Insurance, which is managed by Willis, insures the Xapo Vault against hacking, theft by an employee, a break-in at the physical vault, and bankruptcy, at no extra cost to users.
In a statement, it said: “Xapo formed Meridian to add an extra layer of protection for our customers and their bitcoins.”
“By putting our money and bitcoins into a separate insurance entity, Meridian provides protection against certain events that may happen to Xapo. This would not be the case if we simply kept our assets within Xapo and self-insured the Vault.”
Xapo’s move to insure its users crypto-currency follows the bankruptcy of Mt. Gox in February, which cited debts of $64 million. It also misplaced almost one million bitcoins.
