Brian Armstrong, the CEO of Coinbase, has addressed fears about insolvency in one of his tweets. He also assuaged Coinbase consumers’ anxieties by clarifying that the company’s most recent quarterly filing was completed by the US Securities and Exchange Commission’s regulations (SEC). He says that there was no link between the firm’s risk of bankruptcy and the results. Armstrong made this statement after Coinbase revealed the additional risk element in a required disclosure in its quarterly filing, which read, In bankruptcy, crypto assets held by the exchange could be considered property of the bankruptcy proceedings, and customers could be treated as general unsecured creditors. An unsecured creditor would be the last to be paid in any bankruptcy and last in line for claims. This bit of information caused concern among users, prompting an outpouring of responses on Twitter. Users were concerned that keeping their coins on the platform might be dangerous. No Fear Of Bankruptcy Armstrong addressed all of the speculative worries in a series of tweets. He claims that there was no chance of bankruptcy and that consumer monies were protected entirely. According to the clarification, the disclosure was also supplied to meet SEC obligations. He also stated on Twitter that it was doubtful that “a court would decide to consider customer assets as part of the company in bankruptcy proceedings,” although it’s still a chance. Customers of...
