Clifford Chance

Clifford Chance advises Winklevoss twins on launch of cryptocurrency captive insurer

Leading international law firm Clifford Chance has advised venture capitalists Cameron and Tyler Winklevoss on the establishment of a Bermuda-based captive insurance entity, Nakamoto, to insure their digital currency business, Gemini Custody (Gemini). Nakamato, named for the presumed pseudonymous person who developed Bitcoin, is licensed by the Bermuda Monetary Authority. The establishment was supported by brokers Aon PLC and Marsh LLC.

In 2015, Gemini received one of the first licenses issued from the New York Department of Financial Services to operate a virtual currency exchange, through which customers may trade virtual currency with US dollars.

Nakamoto will provide Gemini with US$200 million insurance coverage and allow its customers to secure additional insurance for their cryptocurrency.  

Partner Nick Williams led the matter, supported by associates Benjamin Lee and Stephany Yang. Partner Michael Seaton and associate Jason Sacks advised on tax matters.

Nick said, "Insurance in the digital asset space remains a dynamic area in a highly regulated industry. The establishment of Nakamoto will assist Gemini in expanding its insurance capacity and bolstering its position as one of the leading digital currency exchanges worldwide. We are delighted to be able to support Cameron and Tyler on this landmark matter."

Clifford Chance was recently awarded top honors at the 2019 Reactions magazine North America Awards ceremony, winning the award for "North America Law Firm of the Year".