Confirming the safety of retail investors’ funds at Coinbase, the cryptocurrency exchange’s chief financial officer, Alesia Haas, said that the risk of Coinbase going bankrupt is unlikely thanks to six billion in cash.
When asked if it’s possible that the courts could force Coinbase to transfer customers’ money to their creditors, she said the risks of such an event are very low.
Coinbase investors have two levels of protection – operational controls and legal protections. Each customer’s assets are segregated and held separately in their accounts. And it is the client who directs the money, and we don’t overdirect the funds.
Haas added that there is simply no basis for regulators to “raid” Coinbase. In any case, the legal protections in such a situation are clearly stated in the customer terms of service.