Coincover Unveils ‘Protected Co-Signing’ for Crypto Transactions to Prevent Fraud and Hacks

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Tanzeel Akhtar

Journalist

Tanzeel Akhtar

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Tanzeel Akhtar has been covering the cryptocurrency and blockchain sector since 2015. She has written for the Wall Street Journal, Bloomberg, CoinDesk, Bitcoin Magazine and Bitcoin.com.

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April 18, 2024 05:55 EDT

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Coincover, a provider of protection and insurance for digital assets, is launching an extra layer of protection service which screens transactions to detect risk of fraud or hacking.

In an announcement, the firm said it has launched ‘Protected Co-Signing’ service to help reduce the risk in digital asset transactions.

Coincover said it is working with Onramp, a bitcoin asset-management platform, the first form to use the new security protection. Protected Co-Signing is being made available to all custody platforms that use key material distributed between multiple entities to sign transactions.

We are thrilled to announce the launch of our latest service, setting the standard for secure Bitcoin transactions: Protected Co-signing 🛡️

The risks involved in digital asset custody, such as misplaced private keys, fraud or an exchange hack, can lead to funds being lost… pic.twitter.com/vYQaMYOKiH

— Coincover (@Coincoverglobal) April 18, 2024

“As transactions have developed over the years, certain industry pioneers have created ways to make cryptocurrencies safer to hold and transact. Now, we’re taking this to the next level,” said Alex Saleh, Head of Partnerships at Coincover, in a press release.

“Our aim is to encourage greater trust in digital assets at the institutional level and protected co-signing provides the ultimate layer of protection so that – even if something goes wrong – there is a safety net, allowing institutions to engage with cryptocurrencies with confidence,” said Saleh.

Crypto Crime Remains Strong

Citing recent data from Chainalaysis, Coincover said despite rising Bitcoin usage, the risk of custodial problems and cases of losses due to fraud and hacking still remain higher than in traditional fiat transactions.

Most recent crypto crime report from Chainalaysis showed $24.2 billion of crypto was lost to illicit addresses in 2023. One category of illicit activity that has seen growth in 2023 however, is ransomware.

In December, smart wallet infrastructure provider Safe launched a curated suite of crypto recovery options, dubbed “Safe Recovery Hub.” The service was launched  is offered in collaboration with global digital asset banking group Sygnum Bank and Coincover.

Coincover was founded in 2018, and is backed by leading fintech and blockchain investors. The firm said it is working with Fireblocks, BitGo, and Ledger, helping institutions to protect themselves and their customers from theft, hacking, and human error.

The business monitors the wallets and measure transactions and exposure levels. Its service works by sending an alert to its system every time a transaction happens. Coincover then uses an access token to query the transaction, check it against its system and flagging if it spots anything deemed suspicious.