Are your digital coins safe if your exchange goes bankrupt?
Due to the crypto crash, the trading platforms are also having a hard time, so the question we ask is whether your digital coins are safe if your exchange goes bankrupt.
Many people have lost money with the down markets lately. This also affects the platforms where you have your money. They can also get into financial trouble. Digital coin owners are concerned about what could happen to their cryptos.
Digital coins safe
Unsurprisingly, a whole discussion has arisen on Twitter about this. Coinbase is one of the largest trading platforms and they just showed bad results. In other words, they have suffered a lot of loss. The latest quarterly figures show a loss of 400 million dollars. Since it is a publicly traded company, this also affects the price.
A Twitter user also came across a notable passage in Coinbase’s terms and conditions. Twitterer WizardofAus has found a provision, which states that the assets of customers can fall into the hands of the bankruptcy trustee in the event of bankruptcy. That is of course never the intention, especially not with digital coins that must be safe on the blockchain. He also says in his tweet that, for example, your Bitcoins are never completely safe with an exchange.
Commotion
Coinbase didn’t know how quickly they had to respond to calm things down a bit. CEO Brian Armstrong was quick to respond: “Your funds are safe with Coinbase, as they always have been.” Armstrong explains that in most cases, customers’ assets are safe, even in the event of bankruptcy. But the word ‘most’ raises the eyebrows of many crypto owners.
