Insurance
Digital Currency Balances
BBCStaticMiner secures customer digital currency through a combination of
secure, online servers and offline (“cold”) storage. BBCStaticMiner
maintains 98% or more of customer digital currency in cold storage, with
the remainder in secure online servers as necessary to serve the liquidity
needs of our customers.
BBCStaticMiner maintains commercial criminal insurance in an aggregate
amount that is greater than the value of digital currency we maintain in
online storage. Our insurance policy is made available through a
combination of third-party insurance underwriters and BBCStaticMiner, who
is a co-insurer under the policy.
The policy insures against theft of digital currency that results from a
security breach or hack, employee theft, or fraudulent transfer.
Our policy does not cover any losses resulting from unauthorized access to
your personal BBCStaticMiner or BBCStaticMiner Pro account(s). It is your
responsibility to use a strong password and maintain control of all login
credentials you use to access BBCStaticMiner and BBCStaticMiner Pro.
Digital currency is not legal tender and is not backed by the government.
Digital currency, such as Bitcoin, Litecoin, and Ethereum, is not subject
to Federal Deposit Insurance Corporation (“FDIC”) or Securities Investor
Protection Corporation protections.
Cash Balances
Cash balances, such as U.S. Dollars, British Pounds, Euros, customers store
with BBCStaticMiner are held as a balance in your BBCStaticMiner or
BBCStaticMiner Pro account(s). For U.S. customers, BBCStaticMiner combines
your balance with the balances of other customers and holds those funds in
custodial accounts at U.S. banks and/or invests those funds in liquid U.S.
Treasuries in accordance with state money transmitter laws. For non-U.S.
customers, funds are held as cash in dedicated custodial accounts. All
custodial pooled amounts are held separate from BBCStaticMiner funds, and
BBCStaticMiner will neither use these funds for its operating expenses or
any other corporate purposes.
To the extent U.S. customer funds are held as cash, they are maintained in
pooled custodial accounts at one or more banks insured by the FDIC. Our
custodial accounts have been established in a manner to make available
pass-through FDIC insurance up to the per-depositor coverage limit then in
place (currently $250,000 per individual). FDIC pass-through insurance
protects funds held on behalf of a BBCStaticMiner customer against the risk
of loss should any FDIC-insured bank(s) where we maintain custodial
accounts fail. FDIC insurance coverage is contingent upon BBCStaticMiner
maintaining accurate records and on determinations of the FDIC as receiver
at the time of a receivership of a bank holding a custodial account.
