Bitvavo’s response to the collapse of FTX

Paul
Paul

The previous week has been a difficult period for anyone involved in the digital assets industry. Many investors are facing losses, and the reputation of the digital assets industry has been impacted.

Although Bitvavo has no exposure towards FTX and Alameda, the events of the past week do show the importance of digital assets. Digital assets allow you to be your own bank using, for example, hardware wallets, without the need to trust third parties such as Bitvavo. Click here for a guide on how to send digital assets from your Bitvavo wallet to your own (hardware) wallet.

Bitvavo considers the security of user funds its top priority and your assets are safe and accessible at any time. For example:

  • Bitvavo is storing most of its users’ assets at insured custody providers who specialise in storing digital assets in a safe environment and are insured up to an amount worth $755 million to mitigate potential risks as much as possible
  • the digital assets of users are, in principle, stored in a separate Dutch foundation; and
  • we have recently introduced the Bitvavo Account Guarantee.

While the past few days have been a difficult period for digital assets, Bitvavo appreciates the recent developments in the market with regards to transparency and security, and we intend to actively take part in these developments. We are actively working on audited statements of both our assets and liabilities and might establish an auditable merkle tree where every user can independently verify the coverage of their assets on the Bitvavo platform, to cryptographically prove that we hold the assets we say we hold on your behalf in the near future.

For further questions about our security measures, or additional support in setting up your own (hardware) wallet, please contact our support team here.



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