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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 insure

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).

jonknee 9y ago
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.
- SippinLean 9y 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.
  - jonknee 9y 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.
    - SippinLean 9y ago
      Ah then Coinbase is the same in that regard. Chase has the opposite strength and weakness regarding theft: you must rely on them.
      - jonknee 9y ago
        No, it's not the same. If someone spends your BTC there is no recourse and it's gone forever. Coinbase specifically does not insure against this.
        SippinLean 9y ago
        I meant only that the subject of the article, Coinbase's architecture's vulnerability was the same as Chase's, instead of "your money at Chase is safe regardless of the bug." You are correct, as they mention in the first paragraph of the article you are responsible for securing your own machine and wallet. Your USD is insured and covered by the FDIC at Coinbase and Chase. Theft is not covered by the FDIC at either.

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).

jonknee 9y ago

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.

SippinLean 9y 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.
- jonknee 9y 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.
  - SippinLean 9y ago
    Ah then Coinbase is the same in that regard. Chase has the opposite strength and weakness regarding theft: you must rely on them.
    - jonknee 9y ago
      No, it's not the same. If someone spends your BTC there is no recourse and it's gone forever. Coinbase specifically does not insure against this.
      - SippinLean 9y ago
        I meant only that the subject of the article, Coinbase's architecture's vulnerability was the same as Chase's, instead of "your money at Chase is safe regardless of the bug." You are correct, as they mention in the first paragraph of the article you are responsible for securing your own machine and wallet. Your USD is insured and covered by the FDIC at Coinbase and Chase. Theft is not covered by the FDIC at either.