Is fidelity's SIPC insurance applicable to losses incurred in the event of a cryptocurrency hack or theft?

3 answers

• Dec 27, 2021 · 3 years ago
  Yes, fidelity's SIPC insurance can cover losses incurred in the event of a cryptocurrency hack or theft. SIPC stands for Securities Investor Protection Corporation, and it provides limited protection to customers in the event of a brokerage firm's failure. While SIPC insurance does not cover losses due to market fluctuations or investment losses, it can provide coverage for unauthorized trading, theft, or fraud. However, it's important to note that SIPC insurance may not cover losses resulting from hacks or thefts of cryptocurrencies, as they are not considered securities. It's best to consult with fidelity or your insurance provider to understand the specific coverage for cryptocurrency-related losses.
  712356
• Dec 27, 2021 · 3 years ago
  No, fidelity's SIPC insurance does not cover losses incurred in the event of a cryptocurrency hack or theft. SIPC insurance is designed to protect customers in the event of a brokerage firm's failure, providing limited coverage for unauthorized trading, theft, or fraud. However, cryptocurrencies are not considered securities, and therefore may not be covered by SIPC insurance. It's important to explore alternative insurance options or consult with fidelity to understand the extent of coverage for cryptocurrency-related losses.
  532178
• Dec 27, 2021 · 3 years ago
  While fidelity's SIPC insurance can provide coverage for losses resulting from unauthorized trading, theft, or fraud, it may not extend to losses incurred in the event of a cryptocurrency hack or theft. Cryptocurrencies are not considered securities, and therefore may not fall under the purview of SIPC insurance. It's advisable to review fidelity's insurance policies or consult with a financial advisor to determine the extent of coverage for cryptocurrency-related losses.
  476119