Cryptocurrency insurance sounds great until you actually need it — here’s the harsh truth

CoinNetwork · 2026-03-27T19:20:19+00:00

Coinbase's Account Protection Program faces scrutiny due to multiple security vulnerabilities resulting in losses such as Intuit officials losing $100,000 and a North Carolina couple robbed of $156,000. Although the program was estimated to compensate $285 million last year, it has many limitations and has been replaced by a lower-tier protection plan. Meanwhile, cryptocurrency thefts are expected to increase by 22% by 2025.

CoinNetwork

2026-03-27 19:20:19

Abstract generation in progress

As several high-profile cases have exposed security vulnerabilities, Coinbase’s account protection program is facing intense scrutiny. The Chief Risk Officer of Intuit, despite subscribing to the Coinbase One service, still lost $100,000, while Coinbase stated that their security settings did not meet standards. In another case, a couple in North Carolina experienced an armed robbery, losing cryptocurrency worth $156,000; Coinbase has discretion over whether to compensate, but their policy does not cover losses due to coercion. The exchange’s premium protection program was estimated to have generated $285 million in compensation last year, but the program has many limitations and has recently been replaced by a lower-tier protection plan. Meanwhile, a report released by Chainalysis indicates that cryptocurrency theft cases are expected to grow by 22% by 2025, exceeding $2.7 billion.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

1 Likes