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May 28, 2016, 12:58:18 PM

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Coinbase is insured against theft and electronic compromise in an amount that exceeds the average value of online bitcoin it holds at any given time. Specifically, Coinbase's insurance policy would respond in the event that bitcoin stored in Coinbase was lost or stolen as a result of a breach of our physical security, cyber security, or as a result of employee theft.

Coinbase has held this insurance since November 2013 with highly rated carriers (S&P rating of A+ or A.M. Best Rating of A XV or higher).

This insurance policy does not cover damages resulting from a specific user's loss, such as the losses resulting from a compromise of the customer login credentials. Coinbase's insurance also contains standard policy exclusions (e.x. force majeure). Should information regarding this coverage materially change, we’ll update this and other relevant pages in a timely manner.

As we know riots and strikes are included in the standard force majeure clause. Can a dramatic rise of bitcoin price be interpreted as a riot against government fiat money? Or the choice to use only bitcoin instead of fiat be interpreted as a strike?

How is Coinbase insuring customer bitcoins? Is it by FDIC? Who are the underwriters?