The safety of clients funds is the first priority for Nexo. All crypto assets held by Nexo in our hot wallets are insured against commercial crime. In the unlikely event that Nexo should suffer a security breach, the insurance policy would compensate any losses of clients funds. Less than 3% of crypto assets are stored in hot wallets and the rest is held in cold storage.
The insurance policy covers all losses resulting from breaches of Nexo’s physical and/or cyber security, and/or employee theft. The insurance policy does not cover losses resulting from the compromise of your Nexo account. It is the account holders’ responsibility to safeguard their accounts by means including but not limited to using a strong password, enabling two-factor authentication and controlling all login credential to Nexo.
Nexo adheres to the highest security standards as we have always done in the Team’s 10+ years in credit facilitation. We would like to underline that there have never been any system intrusions or security breaches. All Nexo systems are audited by top IT specialists to ensure this continues to be the case.
Clients remain owners of the crypto assets placed into Nexo Wallets. We designate individual multi-signature wallets to every client that are provided by SEC-approved custodian BitGo, which was recently backed by Goldman Sachs. BitGo is CCSS Level 3 and SOC 2 compliant.
We have adopted the best industry practices which make up the security protocols of other market leaders using BitGo such as UPbit, Pantera Capital, CME Group, Kraken, Genesis, SBI, Ripple and many more.
Additionally, Nexo is a founding member of the Collateral Protection Insurance (CPI) consortium which brings collateral insurance into the blockchain space. Find out more here.