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0 pointsSippinLean8y ago0 comments

Can you elaborate on how this differs from Coinbase? My understanding is that they are insured. If you are a US customer your cash balance at Coinbase is insured by the FDIC (like it is on Chase).

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jonknee8y ago· 2 in thread

If someone gets into your Coinbase account and transfers everything to their wallet there is no recourse and you're out all your money. If someone gets into your Chase account and transfers all your money out there is a recourse and you get all your money back.

Essentially if Coinbase loses all your USD it should be covered under the FDIC, but if Coinbase loses all your BTC there's nothing you can do.

SippinLeanOP8y ago

Right, a strength and weakness of cryptocurrency is that you are your own bank.

This post was mostly about what Coinbase is doing to mitigate the risk in their architecture (like AWS) I thought you were implying that Chase's vulnerabilites were different in some regard.

>If someone gets into your Chase account and transfers all your money out there is a recourse and you get all your money back

There is? My understanding is that fraud and theft are not covered by FDIC insurance.

jonknee8y ago

> There is? My understanding is that fraud and theft are not covered by FDIC insurance.

It's covered by the bank themselves. You might have to wait a little bit, but you won't be held liable for fraudulent charges. I'm sure there are horror stories, but the vast majority of cases result in someone other than you eating the loss.

Needing help from the FDIC is sort of a worst case scenario for banking, it's extremely uncommon unless there's a 2009 style banking crisis.

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