There’s no FDIC for coinbase
In poor earnings report Coinbase announces it will seize users' crypto if it goes bankrupt
- Thread starter Professor Emeritus
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SleezyBigSlim
Banned
Problem is they can't find an insurer that will insure your crypto assets like the bank does with your cash.
Coinbase warns users could lose their crypto holdings if the company goes bankrupt
Coinbase, one of the largest cryptocurrency exchanges, said its users might lose access to their holdings if the company ever went bankrupt.
The disclosure was included in the company's first-quarter earnings report, and that was the first time the risk factor was mentioned. It also noted that Coinbase held $256 billion in fiat currencies and virtual coins.
"Because custodially held crypto assets may be considered to be the property of a bankruptcy estate, in the event of a bankruptcy, the crypto assets we hold in custody on behalf of our customers could be subject to bankruptcy proceedings and such customers could be treated as our general unsecured creditors," the company said.
That means users would lose access to their balances because they would become Coinbase's property.
It's a different scenario from traditional investments. Many bank accounts, including checking and savings, are insured by the Federal Deposit Insurance Corp. for up to $250,000 per account if the bank goes under, while the Securities Investor Protection Corp. helps if a broker or dealer goes bankrupt.
Following the earnings report, which sent the company's stock plummeting more than 23%, Coinbase CEO Brian Armstrong said there's no risk of bankruptcy right now.
On Twitter Tuesday night, he attempted to reassure users that their funds were safe and apologized for not being more forthright with communicating this risk when it was added. He said the company included the disclosure because of rules recently set by the Securities and Exchange Commission.
I had no idea crypto accounts didn't have the usual insurance you get when a bank, investment etc goes under....
Ridiculous. Will the they consider adding crypto?
I had no idea about this. So I'm guessing it's best people don't keep their cryptos on these type of platforms?
What wallet yall using
Dafunkdoc_Unlimited
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Bitfinex Part Deux
they can keep that funky 200 I put in there 3 years ago 
buying all thats xrp and litecoin did nothing for me
all my money is in treasury bonds now
buying all thats xrp and litecoin did nothing for me
all my money is in treasury bonds now
Rule# 1 is treat crypto like gamblingRule #1 in crypto is to never leave your money on exchanges.
Never spend what you can’t afford to lose
I signed up with them a few months ago and them b*stards wouldn't let me deposit any money for some reason. Forgot all about and kept it moving.
Now I see God was protecting his lil homie
JESUS CHROIST!!!
WE LOVE YOU GOD!!
Now I see God was protecting his lil homie
JESUS CHROIST!!!
WE LOVE YOU GOD!!
Scustin Bieburr
Baby baybee baybee UUUGH
Already took my money out. All that's left is 50 bucks 
Lmao!
Eh?
The government insures bank deposits (up to $250k). Was needed to reassure Americans of the integrity of the banking system after the bank runs during the Great Depression.
No insurer could or would take on that burden. They won't with crypto. More crucially, the government won't insure crypto. That places a legitimacy on crypto that the government doesn't want to bestow.