The events of the past week have been extremely tumultuous. We hope that our community has not been severely affected and our thoughts go out to those that have suffered due to recent events and fallout from the collapse of FTX.
At the time of the events, InsurAce had 4 active covers, totaling around $40,000 USD (or equivalent). We anticipate this to be a claimable event. Details for cover holders are as follows.
Custodian Risk Cover purchased before 1st November 2022
Another announcement shall be made by InsurAce 90 days from 11th November 2022 (i.e. 9th February 2023) to confirm/disconfirm whether FTX has completely suspended all withdrawals for a continuous period of 90 days or more without any advanced notice where withdrawals were first halted during the cover period.
Active cover holders of our Custodian Risk Cover purchased before 1st November 2022 are eligible to submit their claims over FTX’s suspension of withdrawals before the expiration of the earlier of 21 days after InsurAce has publicly confirmed the above, or 15 days after the cover period has expired.
Custodian Risk Cover purchased after 1st November 2022
Another announcement shall be made by InsurAce 120 days from 11th November 2022 (i.e. 11th March 2023) to confirm/disconfirm whether FTX has completely suspended all withdrawals of all Users’ cryptocurrency assets without prior notice for a continuous period of 120 days or more where such suspension of withdrawals first occurred during the Cover Period.
Upon publicly confirming the above, active cover holders of our Custodian Risk Cover purchased on or after 1st November 2022 will be eligible to file their claims for 21 days over FTX’s suspension of withdrawals.
With regards to recent news over unauthorized transactions of users’ funds from FTX, we are aware of a public announcement that FTX has been hacked as reported here on 12th November 2022 that:
“FTX has been hacked. FTX apps are malware. Delete them. Chat is open. Don’t go on FTX site as it might download Trojans,” wrote an account administrator in the FTX Support Telegram chat. The message was pinned by FTX General Counsel Ryne Miller.”
We are also aware of FTX US General Counsel Ryne Miller’s announcement as reported here on 12th November 2022 that:
“Following the Chapter 11 bankruptcy filings – FTX US and FTX [dot] com initiated precautionary steps to move all digital assets to cold storage,” Miller said. “Process was expedited this evening – to mitigate damage upon observing unauthorized transactions.”
Due to perceived difficulties over users proving their losses over the reported hack vs. asset withdrawals over Chapter 11 bankruptcy filings, and the alleged dangers of logging onto FTX, we believe it is easier for our cover holders to file a claim over the suspension of withdrawals. In the event this is not the case, kindly contact us and let us know as soon as possible.
In the meantime, please refer to our evidence checklist here. It contains a list of evidence required by InsurAce in order to review your claim. We advise that all active cover holders collect the necessary evidence as soon as possible and when it is safe to do so.
Thank you again for choosing InsurAce and we look forward to hearing from you.
Covers held for projects associated with FTX
There are many projects that we list on our app that are associated with FTX. However, our cover is for smart contract exploits and as such may not have any claimable events on these projects. We remain vigilant and staying up to date with the latest industry developments.
Temporary suspension of cover sales
We have temporarily disabled cover sales (all showing as ‘sold out’). This is because we have reduced the capacity of products to limit liabilities until the industry settles and the true extent of the fallout from FTX is known. We hope to resume services asap.
InsurAce Asset Management
We would like to be clear that all staked assets, treasury funds and received premiums have never been allocated to any entities associated with FTX or any of its subsidiaries. All funds are SAFU. Some members of the team personally held personal assets on FTX but managed to withdraw ahead of the exchange collapse.
There have been some questions regarding Alameda Research as our early investors. Despite being one of the larger names on the investor list, they were not one of the larger investors in value. They hold a small amount of $INSUR, which is left to be vested over the next 8 months as per the regular investor vesting schedule. The amount held is not significant enough to influence the price of $INSUR.
We understand these are incredibly difficult times. We encourage the community to continue to support one another as has been the way in web3 for some time now. But if any of the community have any questions on anything to do with recent events, our CMO Dan can be found in our discord or telegram channels with the handle @vagrantcrypto or on email: firstname.lastname@example.org