Yes, I would need for Meridian Insurance to put out a statement that they are insuring Xapo against loss of bitcoins under those circumstances. I'd also want to know more about Meridian Insurance.
Unfortunately people lie, so we will never be able to have 100% trust. But that would go some small way.
why dont you just look at Xapo's backers. You think Fortress is going to risk their reputation defrauding people out of small amounts of bitcoin?
Sure, as long as they are legally covered I think they will do absolutely anything that makes them money.
I am surprised that on the same forum where people repeatedly say things like, "if you don't hold the secret keys for your bitcoins then they're not your bitcoins" other people are
encouraging belief in statements made by a company that
actually charge you for holding your bitcoins. It seems to me that such a company would demand a whole other level of rigor compared to even a traditional exchange.
Don't get me wrong, I wish them well and have no specific reason to believe they are crooks. I just would not be comfortable relying on that insurance ever paying out when it's needed. I think cryptocurrency is too new for insurance companies to get a handle on the risks, so find it hard to believe that any insurance company is truly doing that now.