Claim $500Breaking: PayPal Insures Crypto Investors From FTX-Like Crisis
Financial services giant PayPal provides protection of up to $50,000 for every crypto consumer. PayPal will protect customers from all unauthorized crypto transfers from their accounts.
It will help PayPal increase in user base as well as protect its customers from events such as FTX and hacks. However, voluntary protection will only apply in case of unauthorized crypto transactions and errors.
PayPal Protects Crypto Investors
PayPal Senior Vice President Jose Fernandez da Ponte recently announced crypto transfer feature on Venmo or PayPal. Customers could also transfer crypto to external wallets and crypto exchanges. Jose Fernandez da Ponte said they will also protect customers from unauthorized transactions.
As per updated terms and conditions, PayPal will protect customers from unauthorized activity involving the purchase or sale of crypto assets from their accounts.
“PayPal will cover you for the full amount of unauthorized purchase or sale activity, as long as you cooperate with us, and follow the procedures described below.”
Also Read: Litecoin Creator Predicts Massive Post-Halving LTC Price Rally
In case of unauthorized crypto transfers, customers will be reimbursed with up to a max amount of $50,000 over the life of the account holder. PayPal is the first company to promise to compensate users for any losses incurred by unauthorized cryptocurrency transfers.
Unauthorized transactions including password hacked used to send cryptocurrencies from a PayPal account or if crypto assets are sold from the account.
“Any reimbursement you receive from PayPal represents a warranty of our own services. PayPal does not provide insurance and does not insure you against loss of your crypto assets.”
The insurance PayPal provides is voluntary for electronic funds transfers to protect its users. The U.S. Consumer Financial Protection Bureau (CFPB) is yet to enforce Reg E for crypto payments. However, voluntary protection by PayPal is a crucial development in the regulatory framework for protecting cryptocurrency customers.
Also Read: Bitcoin Price Breaks Key Level, Risks Falling To $26K Ahead US Fed Rate Hike?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- “Orange or Green?” Saylor’s Bitcoin Tracker Sparks New BTC Accumulation Speculation
- Bitcoin Holds Above $90K Despite Venezuela Strike As Market Shows Resistance To Geopolitical Shocks
- Maduro Arrest: Prediction Markets Face Insider Trading Scrutiny After Latest US Attack on Venezuela
- Top Gainers of the Week: MYX, PEPE, CC Lead Market Gains as as Bitcoin Rallies To $90k
- Crypto Traders Increase Bets on Judy Shelton for Fed Chair as Trump Remains Silent on Powell’s Successor
- Weekly Crypto Price Prediction: Bitcoin, Ethereum and XRP
- MSTR Stock Price Prediction 2026: Wall Street Senior Analyst Targets $500
- XRP Price Reclaims $2 After 10% Breakout: How High Can It Climb in January 2026?
- Ethereum Price Prediction 2026 As Vitalik Buterin Unveils New Scaling Roadmap
- Bitcoin and XRP Price Prediction 2026 Ahead of US Crypto Reserve, CLARITY Act
- Analyst Predicts Cardano Price to Surge 103% to $0.75 as Midnight, Leios Launch Near
