It’s been just reported that the execs of Coinbase are reassuring users that their funds in the platform are safe despite the current bear market. Check out the latest reports below.
Coinbase execs reassure users
The chief legal officer of leading US-based crypto exchange Coinbase is reassuring investors their funds are safe on the platform. This is despite the bear market in which we currently are.
In a new company blog post, CLO Paul Grewal dispels fears users may have of losing the crypto assets they keep stored on Coinbase if the platform were to ever go bankrupt due to the price volatility of digital assets.
“A couple of weeks ago, a newly required SEC [U.S. Securities and Exchange Commission] disclosure we made in our 10Q [quarterly report] created some noise about how Coinbase holds crypto assets and what could happen in the highly unlikely event of the company’s insolvency. ”
They continued and said the following:
“This led to some genuine concern among people who hold crypto assets on Coinbase. Even though customer assets have always been protected, we know this was scary – especially in a down market.”
Grewal also made sure to explain the fact that a user’s crypto assets would never be mixed up or confused with Coinbase’s corporate holdings.
More than that, the crypto exchange would never lend out a user’s funds like traditional banks would unless specifically instructed.
“Many banks and financial institutions use customer funds for commercial purposes including lending and trading, meaning that they often hold only a fraction of their customer assets at any given time. Coinbase always holds customer assets 1:1.”
Grewal also said:
“This means that funds are available to our customers 24 hours a day, seven days a week, 365 days of the year.”
Stay tuned for more news and make sure to check out the crypto market as well.