If Coinbase goes broke, what will happen to the money I have in my Coinbase wallet? I have about $3,000 worth of Bitcoin, and I’m not sure if it’s worth spending $150 on a ledger to keep it safe. I’m worried because of what happened with FTX.
Coinbase stores user funds separately from their own assets, but there’s still some uncertainty in the event of a bankruptcy. Legal proceedings would determine how user funds are handled.
The cryptocurrency market’s volatility poses a risk to Coinbase’s revenue and financial stability if prices significantly decline.
Regulatory changes in the cryptocurrency industry could raise Coinbase’s costs or limit its operations.
Coinbase holds a substantial amount of customer cryptocurrency assets, which poses a custody risk. In the event of Coinbase’s bankruptcy, customers may not receive their full investment back, depending on legal proceedings. Coinbase has acknowledged this risk in their SEC filings.
I wouldn’t rule out the possibility but after the Sam Bankman-Fried “FTX” scandal, I think the SEC has come up with tougher rules on all the industry players.
yes,… and in the event of bankruptcy, the assets held by Coinbase could potentially become part of the bankruptcy proceedings.
Stop lying. Coinbase wallets are self-custodial (YKYC) and distinct from Coinbase. Whatever happens with Coinbase, the cryptocurrency in your Coinbase wallet will remain unaffected.