Coinbase CEO Reassures Traders That Users Funds Are Safe Despite the Bearish Crypto Market

The chief legal officer of the leading US crypto exchange, Coinbase, is reassuring investors that their funds are safe on the platform despite the stagnant crypto markets.

In a new company blog post, CLO Paul Grewal allays users’ concerns that the crypto assets they hold on Coinbase will lose if the platform goes bankrupt due to the volatility of digital asset prices.

“A few weeks ago, the Securities and Exchange Commission was newly required [U.S. Securities and Exchange Commission] Disclosure we made in 10Q [quarterly report] It created an uproar about how Coinbase will hold crypto assets and what could happen in the highly unlikely event of a company going bankrupt. This has caused real concern among people with crypto assets on Coinbase.

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While client assets are always protected, we know it was a scary thing, especially in a bear market. »

According to Grewal, a user’s crypto assets will never be mixed or confused with Coinbase’s holdings, and a crypto exchange will never lend user funds like traditional banks, unless specifically instructed to do so.

“Many banks and financial institutions use customer funds for commercial purposes, including lending and trading, which means that they often hold a small portion of their customers’ assets at any given time. Coinbase still owns 1:1 customer assets. This means that the funds are available to our customers on 24 hours a day, 7 days a week, 365 days a year.

Grewal continues to note that Coinbase is doing much better now than it was a year ago.

“Nothing has changed about Coinbase. On the contrary, we are in a stronger position even 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 engage in crypto.

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Disclaimer: The opinions expressed in The Daily Hodl are not investment advice. Investors should perform their due diligence before making high-risk investments in bitcoin, cryptocurrency, or digital assets. Please note that your transfers and transactions are at your own risk and that any loss you may incur is your responsibility. The Daily Hodl does not recommend buying or selling cryptocurrencies or digital assets, and The Daily Hodl is not an investment advisor. Please note that The Daily Hodl is involved in affiliate marketing.

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