The chief legal officer of leading US-based crypto exchange, Coinbase, reassures investors that their funds are safe on the platform despite stagnant crypto markets.
In a new corporate blog post, CLO Paul Grewal allays fears users may have of losing the crypto assets they keep on Coinbase if the platform goes bankrupt due to asset price volatility digital.
“A few weeks ago, a newly required SEC [U.S. Securities and Exchange Commission] disclosure we made in our 10Q [quarterly report] made noise about how Coinbase holds crypto assets and what could happen in the highly unlikely event of the company’s insolvency. This has caused real concern among people who hold crypto assets on Coinbase.
Even though client assets were always protected, we know it was scary, especially in a bear market. »
According to Grewal, a user’s crypto assets would never be mixed or conflated with Coinbase’s company holdings, and the crypto exchange would never lend a user’s funds like traditional banks would, unless specifically instructed. .
“Many banks and financial institutions use customer funds for business purposes, including lending and trading, which means they often only hold a fraction of their customers’ assets at any given time. Coinbase still owns customer assets 1:1. This means funds are available to our clients 24 hours a day, 7 days a week, 365 days a year.
Grewal goes on to note that Coinbase is doing better now than a year ago.
“Nothing about Coinbase has changed. On the contrary, we are in an even stronger position than a few months or a year ago – and we will continue to work to be the easiest and most trusted way for people to get involved in crypto.
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Coinbase Executive Reassures Traders That User Funds Are Safe Despite Crypto Bear Market
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