CEO of cryptocurrency exchange Coinbase tries to prove that users' bitcoins are properly protected

After Coinbase's report, in which the company announced its losses, a message that users are not protected in case of bankruptcy became popular on social media. However, Coinbase CEO Brian Armstrong explained that asset security tools «work as they always have.»

In the company’s report for the first quarter of 2022, Coinbase reported its first loss of $ 430 million. In addition, the company also noted that the number of users conducting transactions on the exchange decreased from 11.4 million to 9.2 million.

After the announcement of the losses, Twitter began to raise concerns about the information about the bankruptcy process. In particular, the following words were quoted from the SEC report: «In the event of a bankruptcy, the crypto assets we hold on behalf of our clients may be subject to bankruptcy proceedings.»

In response to these fears, Armstrong assured users that the company is «not at risk of bankruptcy» and that clients' funds are safe. However, he said that in the event of a bankruptcy, there is an «unlikely» possibility that a court would decide to treat users' retail assets as part of the company, even if it would harm customers.