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Former Bittrex Execs Raise $40 Million of Bitcoin to Back Insurance Firm

A group of former executives from cryptocurrency exchange Bittrex have raised $40 million in bitcoin to back a new insurance firm, according to a statement released Tuesday.

The investment, which was made in the form of a private placement, will support the launch and growth of the insurance firm, which is still unnamed. The company plans to offer a range of insurance products, including coverage for cryptocurrency assets, to individuals and businesses.

The investment round was led by a group of former Bittrex executives, including Rishi Shah, who served as the exchange's chief operating officer, and Jesse Powell, the exchange's founder and former CEO. The pair were joined by a number of other investors, including a group of family offices and high-net-worth individuals.

"We're thrilled to be backing this innovative new insurance firm, which has the potential to revolutionize the way people and businesses manage risk," said Shah in a statement. "As former Bittrex executives, we have a deep understanding of the cryptocurrency space and the need for reliable and secure insurance options."

The insurance firm has not yet revealed its name or other details about its products or services. However, it has stated that it plans to offer a range of insurance products, including coverage for cryptocurrency assets, as well as more traditional insurance products such as property and casualty insurance.

The investment in the insurance firm is the latest in a series of high-profile investments in the cryptocurrency and blockchain space. In recent months, a number of high-profile investors, including venture capital firms and family offices, have invested in a range of cryptocurrency-related startups.