Coinbase CEO Brian Armstrong Addresses Coinbase Documents 10-Q The most recent filing with the US Securities and Exchange Commission. It uses language that details the risk factors for retail investors’ crypto assets in the event Coinbase files for bankruptcy — to be clear, Armstrong stressed that there will be no bankruptcy.
Brian Armstrong made the comments after Coinbase said Tuesday that in the event of bankruptcy, crypto assets held by the company could be considered assets of the bankruptcy process. and customers may be treated like general unsecured creditors (Unsecure creditor)
An unsecured creditor will be the last to be paid in bankruptcy and last in a claim.
Coinbase, whose shares fell 15% in extended trading on Tuesday. It also missed projections for first-quarter revenue and losses due to global market turmoil. This allows investors to reduce high-risk assets, including cryptocurrencies.
Coinbase, a cryptocurrency exchange The largest US cryptocurrency It said the disclosure could lead customers to believe that keeping the coin on the platform would be deemed “considerable.” It is ‘more risky’ which will have a significant impact on the financial position.
“We’re not at risk of bankruptcy,” Armstrong wrote on Twitter after the revelation. which he said was made to meet SEC requirements.
He said it was unlikely that “The court will decide to consider client assets as part of the company’s bankruptcy proceedings,” and he said Coinbase would take further steps to ensure protection for retail customers.
“We should improve our retail client conditions faster. And we did not proactively communicate when this risk disclosure was increased,” Armstrong said. “Your money on Coinbase remains protected, secure, and belongs to you,” the company said.
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