CoinFLEX’s insurance coverage protects a portion of the user funds against losses resulting from theft or cybersecurity threats. CoinFLEX has not shied away and is strongly committed with over $1 million USD of corporate funds that will be used in the insurance fund.
Additionally our custody, wallet, and crypto infrastructure team has been handling crypto exchange funds for 8 years, with zero breaches or hacks and zero losses of client funds.
Losses incurred due to customers’ trading activity or unauthorized behaviour are the sole responsibility of the user and do not fall within the premise of the insurance fund.
CoinFLEX’s client funds are stored with high security and stringent protocols in place, that eliminate human error in addition to external threats. Our primary custodial infrastructure is powered by Fireblocks, supporting us with a multi-layer technology that combines the latest breakthroughs in MPC cryptography with hardware isolation. Fireblocks has $30 million USD of insurance that covers assets in storage and in transit and this year has raised over $400 million from various blue chip VC investors and financial institutions.
In 2021, CoinFLEX is moving even further towards securing client funds by introducing Decentralised Custody. Clients’ balances and withdrawals will no longer be something we solely control. Instead, we have created a type of a multisig network, where all balance-changing user actions are passed privately (using Zero Knowledge Proofs) in an SGX enclave to other reputable external parties who independently verify that every client funds move is justified by client actions and orders.
CoinFLEX team will still not rest at that and will continue to deliver further enhancements to client funds security as new technologies and solutions become available.