Bitsurance Founder Protects Bitcoin Holders From Physical Risks
Bitsurance wants to protect self-custodied bitcoin from theft, fire, and floods. The policy covers up to €500,000 and is aimed at rising physical risks.
Key Takeaways
- Chris Seedor, cofounder and CEO of Bitsurance, offers insurance for self-custodied bitcoin on hardware wallets.
- The policies cover physical risks like theft, fire, floods, and $5 wrench attacks, up to €500,000.
- Losses are paid out in fiat currency; Seedor points to recent violent incidents in France as the reason for this protection.
Chris Seedor, known for spending 1,500 bitcoin on a graphics card in 2011, is now focused on protecting bitcoin holders from physical risks like theft, fire, and floods. As the cofounder and CEO of Bitsurance, he offers insurance specifically aimed at the security of self-custodied bitcoin on hardware wallets.
From Hardware to Insurance
Seedor, who originally works as a mechanical engineer, got the bitcoin as a gift from a friend at the time and did not see much use for it at first. Since then, he has become a dedicated bitcoin fan and developed the Seedor wallet, a stainless steel backup for seed phrases that he describes as "the most primitive way to store the most advanced money." That innovation grew into a company focused on the safe storage of cryptographic keys.
Insurance Against Physical Threats
With Bitsurance, Seedor is now focused on insuring bitcoin against physical damage and attacks, including fire, floods, and the notorious "$5 (€4) wrench attack," where criminals threaten owners to get access to their crypto. The insurance policies are underwritten by Liberty Specialty Markets, part of the Liberty Mutual Group, and offer coverage up to €500,000. If a claim is made, the loss is paid out in fiat currency.
Seedor points to recent incidents in France where crypto holders were victims of violence and even kidnapping attempts, such as the wife of Sebastien Borget, cofounder of The Sandbox. According to him, that shows why insurance like this is needed.
Relevance for European Crypto Users
The rise of specialized insurance like Bitsurance could offer an important extra layer of protection for European bitcoin holders. With crypto growing in value and physical risks on the rise, insuring hardware wallets could become an increasingly relevant way to limit losses from theft or disasters. This fits into the broader trend of growing interest in crypto insurance worldwide, where the market is expected to expand sharply in the coming years.
