Student Who Spent 1,500 Bitcoin on a Graphics Card in 2011 Now Runs Bitcoin Insurance Firm

A college student who spent 1,500 Bitcoin in 2011 on a graphics card now runs an insurance business that protects Bitcoin holdings, The Block reported on June 11.

Chris Seedor, co-founder and chief executive officer of Bitsurance, told attendees at the BTC Prague event in Prague that he bought a graphics card in 2011 for less than 1,500 Bitcoin. At current prices, that amount is worth about $90 million.

Seedor, a mechanical engineering major, recalled receiving Bitcoin from a friend while in college but seeing little practical use for it at the time. He later developed a backup solution for storing seed phrases on metal and turned it into a business.

He recently moved into insurance after focusing on the physical threats facing Bitcoin holders. The company he founded, Bitsurance, offers insurance products for Bitcoin stored in hardware wallets.

The coverage includes losses from disasters such as fire and flooding, as well as physical attacks including robbery and coercion. It is designed in particular to address the risk of forced theft known in the crypto industry as a "$5 wrench attack."

"I was always worried about someone breaking into my house, threatening me or my family, and demanding my assets," Seedor said.

He added that robberies and kidnappings targeting crypto holders have been increasing in parts of Europe, including France. One recent case involved an attempted kidnapping targeting the family of The Sandbox co-founder Sebastien Borget.

Bitsurance's insurance products are underwritten by Liberty Specialty Markets, part of Liberty Mutual Group. Customers can receive as much as 500,000 euros in fiat currency if they suffer Bitcoin losses.