How is my cryptocurrency insured?
MyBlockX carries a crime insurance policy to cover the losses of digital assets held across our storage systems from theft, including cybersecurity breaches. However, our policy does not cover any losses resulting from unauthorized access to your personal MyBlockX due to a breach or loss of your credentials. It is important that you use strong passwords and maintain custody over login credentials used for accessing this service.
Cryptocurrency is not legal tender and does not have backing from the government. Cryptocurrencies including Bitcoin, Litecoin, or Ethereum are subject to Federal Deposit Insurance Corporation (FDIC) protection but other cryptocurrencies aren't covered under the US Securities Investor Protection Act of 1970 meaning that your investment may be at risk if something goes wrong with them financially.
In the event of a covered security incident, we will endeavor to make you whole. However total losses may exceed insurance recoveries so your funds might still be lost.
How is my cash insured?
Fiat balances, such as U.S. dollars, British pounds, or euros, are held in your MyBlockX e-money wallets as a balance in your MyBlockX. For U.S. customers, MyBlockX combines your balance with the balances of other customers and holds those funds in either:
custodial accounts at U.S. banks and/or
invests those funds in liquid U.S. Treasuries, or
USD denominated money market funds in accordance with state money transmitter laws.
In order to ensure the safety of your funds, MyblockX will hold them for you in different ways. For non-U.S customers, we have cash holding accounts that are separate from our pooled investments and corporate expenses so they can't be used by either entity for any other reason than what's mentioned here - nothing else.
To the extent U.S customer funds are held as cash, they're maintained in pooled custodial accounts at one or more banks insured by the FDIC which is why we can offer pass-through protection for these customers up to $250K per individual with full coverage from our company against any risk should a bank where this money is stored fail and be taken over by another party that takes responsibility on all debt-related obligations while still maintaining its original level of safety before failing.