Cryptocurrency users are increasingly adopting protection plans like Coinbase One to combat rising digital asset theft. These services often include significant exclusions that leave accounts vulnerable to common takeovers. Coverage typically excludes losses from phishing scams or social engineering hacks where users are deceived into granting access.
Matthew Allan lost nearly $100,000 in Bitcoin despite subscribing to Coinbase One. The service advertises up to $1 million in account protection, yet Coinbase denied Allan’s claim. The company stated users remain responsible for account activity even when credentials are compromised.
Coinbase also noted Allan failed to enable specific security settings required by the warranty. These protection plans are not formal insurance and often do not reimburse for losses covered by traditional financial policies.