The promise of protection in crypto markets may be starting to face closer scrutiny, and Coinbase COIN appears to sit near the center of that tension. In one case, a Coinbase One subscriber lost nearly $100,000 in Bitcoin and expected coverage tied to a subscription that advertised up to $1 million in protection. The company maintained that users remain responsible for account activity, even if credentials are compromised, and said the customer did not meet eligibility requirements tied to specific security settings. The dispute moved into private arbitration, and while the outcome is unclear, the situation could highlight how coverage depends heavily on detailed terms rather than headline guarantees.

As more investors allocate to…