Uphold protects customer digital currency by storing roughly 90% of cryptocurrency held in its reserves in an offline cold storage solution securely protected by a multi-signature process to ensure no single person has authority to move cryptocurrency. The remaining 10% is stored in secure online servers to manage liquidity for our service.
Uphold maintains an insurance policy to protect against theft of cryptocurrency due to a security breach or hack, employee theft, or fraudulent transfer and may cover up to the total asset value stored in our offline storage. Please visit our transparency page here https://uphold.com/en/transparency for live status of our reserve. Our insurance policy does not cover any losses due to unauthorized access to your Uphold account. It is your responsibility to use strong passwords and 2-factor authentication to access your Uphold account and to approve withdrawals from your account.
Digital currency is not legal tender and is not backed by the government and therefore not subject to Federal Deposit Insurance Corporation (“FDIC”) or Securities Investor Protection Corporation protections.