Cryptoasset Insurance Report 2025
1st February 2025
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Foreward
Not your name, not your claim – this industry-first report examines the gaps and misconceptions surrounding the cryptoasset insurance coverage that owners often assume they have by default when using crypto exchanges, crypto custodians, and self-custody crypto wallets. Our aim is to inform crypto owners that, unless they are a named beneficiary on a regulated insurance policy, they are unlikely to have any coverage at all.
Executive Summary
If you don’t have a digital asset insurance policy in your own name, we’re sorry to break it to you: not your name, not your claim - it is highly unlikely that you will have any contractual rights to awards made from any crypto insurance policy if you suffer a theft. This article explores why that’s the case and sheds light on how crypto owners are often led into believing they have coverage when they don’t.
One of the most widespread misconceptions in the cryptocurrency industry is the assumption that holding cryptoassets on an exchange or with a custodian that advertises having crypto insurance means your assets are protected. Unfortunately, this is often far from the truth. The reality is stark: unless you are explicitly named on an insurance policy, you are not covered. These policies are designed to safeguard the custodian or exchange against losses, not to reimburse individual users in the event of theft, hacking, or insolvency. There is little to no transparency about how, or even if, these policies benefit end users. The simple rule is: if an insurance policy is not in your name, it’s not your claim. Any compensation from crypto infrastructure providers that might be considered is entirely discretionary and extremely rare.
This article aims to clarify the risks faced by crypto owners, debunk common myths about cryptoasset insurance, and highlight the urgent need for individual insurance solutions to protect users in this rapidly evolving industry. The table below provides an overview of the major exchanges and custodians, along with information about their insurance (or lack thereof):
| Crypto Exchanges | Insurance cover | % of AUM insured | Are users insured? |
|---|---|---|---|
| OSL | $1BN | 109%-300% range | No |
| Crypto.com | $750M | Not public | No |
| Coinbase | $255M | 0.053% | No |
| Gemini | $125M | 0.42% | No |
| Bitstamp | NA, rely on custodian cover | NA | No |
| OKX | None | NA | No |
| ByBit | None | NA | No |
| Binance | None | NA | No |
| Kraken | None | NA | No |
| FTX | Collapsed | NA | No |
| Crypto Custodians | |||
| BitGo | $250M + $700M ‘excess specie’ | 0.39% (directly) | Yes, via excess specie policy |
| Copper | $500M | Not public | Not public |
| Komainu | Not public | Not public | Not public |