Coinbase offers this vague promise on their website that they are
"partially insured", but does anybody know what that actually means? If they are hacked and the addresses get destroyed or stolen (we'd never know which), then... where would that leave Coinbase depositors?
It's a business, a risky one with one of targets of hackers, and so yeah they probably has reserve fund for this incident and insurance in case such thing happens. But as for other businesses like banks, they probably have maximum amount to be recovered say only $250,000 just like FDIC insured banks, more than that will be considered as goodbye.