Just Use BitWallet – Coinbase CEO Says Funds are “Safe”
The verbage Armstrong uses should make anyone leery – and only more reason to just use BitWallet and keep your Bitcoin and cryptocurrency off exchanges such as Coinbase
Coinbase CEO says funds are safe amid bankruptcy protection fears
“After the loss was posted, concerns over bankruptcy protection were brought up on Twitter, quoting lines from the disclosure that said, ‘In the event of a bankruptcy, the crypto assets we hold on behalf of our customers may be subject to bankruptcy proceedings.’
Additionally, the disclosure mentioned that the users will be treated as ‘unsecured creditors’ when this happens. This led to speculation that if Coinbase went bankrupt, the coins that they hold will be company property.
In response to these concerns, Armstrong assured the users that the company has ‘no risk of bankruptcy’ and that customer funds are safe. However, he said that if the company goes bankrupt, there is an ‘unlikely’ possibility that a court would decide to consider consumer assets as part of the company in the proceedings “even if it harmed customers.'”