Coinbase earnings were bad. Worse still, the crypto exchange is now warning that bankruptcy could wipe out user funds

I'm sure Coinbase won't let you, unless it's a piddly little sum.

Like PayPal, they can just "freeze" accounts whenever the mood takes them.

yup

put options

in and out in 2 days - 24%

crypto's here for the long run....calm down.

Bitcoin was $29k last July then to $65k in Nov.

Look at the charts.

It fluctuates like the tides my sisters and brothers.

mmmm

I don't play options often but when I do it's at times like this..

When there is major volatility you've got a good chance of hitting your exit before they expire if you don't get too greedy.

Mine sold off yesterday while I was planting potatoes in the garden...

Gotta love it.

I've come to the conclusion you're an idiot...

Bam !

No contract, no case, you've been warned crypto friends, this is just a wild shell game.

"This disclosure makes sense in that these legal protections have not been tested in court for crypto assets specifically, and it is possible, however unlikely, that a court would decide to consider customer assets as part of the company in bankruptcy proceedings even if it harmed consumers", Armstrong tweeted, while reassuring users that "your funds are safe at Coinbase."

less then 50% fair use act
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You're sure, huh? Fuckin turd. You dont know shit but you act like you're an expert. Pathetic.

Hidden away in Coinbase Global's disappointing first-quarter earnings report—where the U.S.'s largest cryptocurrency exchange reported a quarterly loss of $430 million and a 19% drop in monthly users—is an update on the risks of using Coinbase's service that may come as a surprise to its millions of users.

In the event the crypto exchange goes bankrupt, Coinbase says, its users might lose all the cryptocurrency stored in their accounts, too.

Coinbase said in its earnings report Tuesday 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.” Coinbase 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.

That shouldn't happen.

An individual's ownership of cryptocurrency is supposed to be immutable and absolute; that's one of the key selling points touted by blockchain evangelists everywhere. But when a user creates a Coinbase account, they often end up storing their cryptocurrency in a wallet controlled by Coinbase, which means the individual is giving away at least part of their control over their own funds.

Access to a crypto wallet is governed by a private key, which is a long string of characters that effectively acts as a password. Without the key, the cryptocurrency in the wallet can't be accessed. On Coinbase, the exchange holds the private key and lets users access the funds within the wallet using a more conventional password. The setup makes it easier for users to enter their accounts, by remembering an easier password.

Yet it means that, when push comes to shove, Coinbase ultimately governs whether a user gets access to those assets.

In comments shared on Twitter, Coinbase CEO and founder Brian Armstrong said the exchange had "no risk of bankruptcy," and that the disclosure was made due to new rules set by the U.S. Securities and Exchange Commission regarding public companies that hold crypto assets on behalf of others.

"This disclosure makes sense in that these legal protections have not been tested in court for crypto assets specifically, and it is possible, however unlikely, that a court would decide to consider customer assets as part of the company in bankruptcy proceedings even if it harmed consumers", Armstrong tweeted, while reassuring users that "your funds are safe at Coinbase."

Bank accounts in the U.S. are protected by deposit insurance offered by the Federal Deposit Insurance Corporation. In the event a bank fails, the FDIC steps in to protect deposits up to $250,000, preventing depositors from going broke along with the bank. Crypto exchanges don't offer that same protection

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Coinbase is not secure. They did nothing when I was hacked and lost $75,000. Take your money out of Coinbase. Store in a cold wallet. They will do nothing to help you.

I've come to the conclusion you're an idiot...

"Sorry, you can not Withdraw our funds at this time"

[link to youtu.be (secure)]

Russia will hit USA with an EMP soon.

Don't worry folks we still got out Private Keys.

The invading force will accept Bitcoin still.

You cant fix stupid.

People will be jumping off buildings once the power grid goes.

But but I'm a bitcoin millionaire and its gone.

Hidden away in Coinbase Global's disappointing first-quarter earnings report—where the U.S.'s largest cryptocurrency exchange reported a quarterly loss of $430 million and a 19% drop in monthly users—is an update on the risks of using Coinbase's service that may come as a surprise to its millions of users.

In the event the crypto exchange goes bankrupt, Coinbase says, its users might lose all the cryptocurrency stored in their accounts, too.

Coinbase said in its earnings report Tuesday 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.” Coinbase 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.

That shouldn't happen.

An individual's ownership of cryptocurrency is supposed to be immutable and absolute; that's one of the key selling points touted by blockchain evangelists everywhere. But when a user creates a Coinbase account, they often end up storing their cryptocurrency in a wallet controlled by Coinbase, which means the individual is giving away at least part of their control over their own funds.

Access to a crypto wallet is governed by a private key, which is a long string of characters that effectively acts as a password. Without the key, the cryptocurrency in the wallet can't be accessed. On Coinbase, the exchange holds the private key and lets users access the funds within the wallet using a more conventional password. The setup makes it easier for users to enter their accounts, by remembering an easier password.

Yet it means that, when push comes to shove, Coinbase ultimately governs whether a user gets access to those assets.

In comments shared on Twitter, Coinbase CEO and founder Brian Armstrong said the exchange had "no risk of bankruptcy," and that the disclosure was made due to new rules set by the U.S. Securities and Exchange Commission regarding public companies that hold crypto assets on behalf of others.

"This disclosure makes sense in that these legal protections have not been tested in court for crypto assets specifically, and it is possible, however unlikely, that a court would decide to consider customer assets as part of the company in bankruptcy proceedings even if it harmed consumers", Armstrong tweeted, while reassuring users that "your funds are safe at Coinbase."

Bank accounts in the U.S. are protected by deposit insurance offered by the Federal Deposit Insurance Corporation. In the event a bank fails, the FDIC steps in to protect deposits up to $250,000, preventing depositors from going broke along with the bank. Crypto exchanges don't offer that same protection

less then 50% fair use act
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In other news, I made 24% this week shorting Amazon and Tesla :)

Haven't we heard that before?

Enron, Fannie Mae, Lehman Brothers...?

If there's one thing we should learn from history it's that, when they start saying "your funds are safe with us", that's your last chance to pull those funds, because the whole thing is going to collapse any second, and they're only saying that crap to give themselves enough time to pull their funds (at your expense!) before it all goes down the drain.

I certainly won't be feeling sorry for any sucker who decides to keep their money on any (cyber or not) "stock exchange" (more like Boiler Room (2000) scam) .

Super pin that thread for awareness.

I bet you that a wild panic sell off all across the crypto board has already begun.

Watch and see !

JMHO.

This is Mt. Gox 2.0 in the making people lost everything in that but people don't see history about to repeat here.

To the moon they say.

Fugazi Tether will save us.

Offshore Tether will save us.

Print more baby!

Magic Air Coin Tether to pump up BTC.

Watch the bubble pop.

This is sad and should've never been allowed to happen.