Reiterating the safety of retail investor funds at Coinbase, the cryptocurrency exchange’s chief financial officer Alesia Haas on Friday said all investor assets are ‘absolutely safe’. She made the comments while speaking to CNBC‘s Andrew Ross Sorkin.
‘Tail Risk’ To COINBASE Investors
The CFO was asked if it was possible that the courts could force Coinbase to divert customer money to its creditors. In reply, she said if it comes to it, there is a very small tail risk that it still could happen.
The clarification follows a recent disclosure that suggested if Coinbase were to go bankrupt, it could treat its customers as ‘unsecured creditors’.
“There are two layers of protection to Coinbase investors — operational controls and legal protection. Each clients’ assets are segregated and separately held in their name on our ledgers. And it is the customer who directs the money and we do not re-hypothecate any funds.”
Funds Not At Risk
Haas added that hence, there is no risk of a possible ‘run’ on Coinbase. She explained that the legal protections are clearly stated in the terms of service with the customers.
