Coinbase CEO Ensures Protection of Business Funds

Brian Armstrong assured that, despite the rumors, the funds of his clients will always be protected

Coinbase CEO Brian Armstrong recently assured that customer funds on the platform are lly protected “as they always have been.”

This clarification comes in the midst of a revelation made on social networks, where it was suggested that users do not have any type of protection against a bankruptcy case.

The disclosure also mentioned that users will be treated as “unsecured creditors” when this happens. This led to speculation that if Coinbase went bankrupt, the coins they own would be owned by the company.

Given this, Armstrong assured that there is no risk of bankruptcy, and that the funds of all clients will always be kept safe. Despite this, he did say that should the company go bankrupt it is “unlikely” that a court will decide to consider consumers’ assets as part of the company in the process “even if it harms customers.”

Coinbase CEO remains optimistic. Armstrong said that as a company, Coinbase has survived many cryptocurrency cycles, including some of the biggest crashes, and this makes them “well suited to operating” within these rough waters.

K. Tovar

Source: Cointelegraph

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