Um, backups of the data won't prevent it from being stolen. And the more places you spread the data around to, the more places need to be secured.
I'm not saying it's impossible to secure it, but it's not as simple as making backups.
I was talking about if user data is destroyed which is essential in cross-checking who owns which but perhaps it's not what you meant here: 🤔
If they are hacked and the addresses get destroyed or stolen (we'd never know which),
yes they are insured but up to $250k only per account.
It still doesn't make sense to me how they plan to cover $250,000 for each account with compromised crypto, given that most of Coinbase's assets are in crypto.
It is worth noting that only fiat deposits are insured because coinbase stores them in FDIC-insured banks-- probably doesn't apply to non-US coinbase customers as well tho cmiiw. Cryptocurrencies remain uninsured.