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Digital asset protection startup Coincover raises $30M to protect against hacks or human error

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Coincover, a provider of crypto asset protection and recovery alongside theft insurance, today announced that it secured $30 million in a round led by Foundation Capital.

Founded in 2018, the startup addresses security issues that threaten crypto companies by delivering solutions that help businesses secure their crypto assets and ensure that they never lose access to their funds due to user error, infrastructure failure or hacks.

Its products include rapid recovery of lost crypto keys from disasters, protecting wallets from potential threats and mitigating risks. To do this the company works with intermediaries to secure customer assets and provides a proprietary service that checks for suspicious activity, such as hacks or erroneous transfers, in customer transactions to protect its users.

If something does happen, the protections offered by its platform are underwritten by crypto insurance policies. Coinover works with underwriters at Lloyd’s of London in the United Kingdom to back its services. If any crypto assets of clients protected on its platform are lost the company will cover their losses.

“In the wake of a challenging year for the crypto market, Coincover is in high demand, as businesses and consumers scramble to safeguard their digital assets,” David Janczewski, chief executive and co-founder of Coincover, said.

Last year the cryptocurrency industry suffered massive losses to hacks with almost $3.8 billion stolen from crypto businesses, according to a report released by Chainalysis. Although the activity wasn’t steady throughout the year, October was the single biggest month, with $775 million stolen in 32 separate attacks. During that month hackers stole $570 million from BNB Chain, a blockchain developed by the crypto exchange operator Binance Holdings Ltd.

Coincover already boasts more than 300 businesses including exchanges, wallets, hedge funds and banks. Among the company’s current customers include well-known crypto custodians Fireblocks and BitGo as well as the crypto exchange Bitso.

“Through this new funding, we can supercharge our service for all existing and future customers – building a better and more mature digital asset ecosystem in the process,” said Janczewski.

With the new funding, Coinover intends to follow customer adoption of crypto and assist businesses or individuals looking for protection of their assets by building out its platform. To do this, the company will be hiring more employees, adding more features and pursuing further partnerships to address emerging security needs in the crypto industry.

Image: Pixabay

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