How does subrogation in insurance apply to the world of digital currencies?

3 answers

• Dec 16, 2021 · 3 years ago
  Subrogation in insurance refers to the process where an insurance company takes legal action against a third party to recover the costs it has paid out to its policyholder. In the world of digital currencies, subrogation can come into play when a cryptocurrency exchange experiences a security breach or hack. If the exchange's insurance policy covers such incidents, the insurance company may initiate subrogation to recover the funds it has reimbursed to affected users. This helps to mitigate the financial impact on the insurance company and encourages exchanges to prioritize security measures.
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• Dec 16, 2021 · 3 years ago
  Subrogation in insurance is like having a backup plan for digital currency exchanges. If an exchange gets hacked and users lose their funds, the insurance company can step in and reimburse the affected users. But it doesn't stop there. The insurance company can then go after the hackers or any other responsible party to recover the funds it has paid out. This ensures that the insurance company doesn't bear the full financial burden and encourages exchanges to maintain high security standards.
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• Dec 16, 2021 · 3 years ago
  At BYDFi, we understand the importance of subrogation in insurance when it comes to digital currencies. If our exchange experiences a security breach, our insurance policy allows us to reimburse affected users and then pursue legal action against the responsible party. This not only protects our users but also helps us maintain a secure and trustworthy platform. Subrogation is just one of the many ways we prioritize the safety of our users' funds.
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