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Coinbase said in its earnings report that it holds $256 billion in both fiat currencies and cryptocurrencies on behalf of its customers. Yet the exchange noted that in the event it ever declared bankruptcy, “the crypto assets we hold in custody on behalf of our customers could be subject to bankruptcy proceedings.” Users would become “general unsecured creditors,” meaning they have no right to claim any specific property from the exchange in proceedings. Their funds would become inaccessible.

@dcid the whole thing is insane..

Wasn’t crypto supposed to provide security against this very thing?

@tony @dcid it does when not using major exchanges. The extra fees for non-KYC purchases are worth every penny and I heard it stated, and it makes sense to me at least, that the real price of any are what non-KYC charge. The KYC exchanges sell at a 'discount' in order to collect all the extra data they get in the process

@tony @dcid I suppose it does if folks don't keep their wallets at Coinbase.

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