Setting the record straight: Your funds are safe at Coinbase — and always will be | by Coinbase | Jun, 2022

Paul Grewall, Chief Legal Officer

A few weeks ago, our new SEC announcement in our 10Q made some noise about how Coinbase handles crypto assets and what the company’s losses could be in the event of an unforeseen event. This has caused some real concern among people who own crypto assets on Coinbase.

Although customer assets have always been protected, we know this has been a daunting task – especially in low-income markets. We want to share how we will protect your assets today and in the future

  • Your money is your money, and your crypto is your crypto.Coinbase protects internal systems such as a bank or broker. Our fully audited notebook identifies your account, your file and crypto contents, and tracks your account activity instantly. Consumer funds are never confused with corporate assets.
  • We will never use your money.We will not take any action on your property unless specifically instructed to do so. Many banks and financial institutions use customer funds for business purposes, including loans and transactions, which means they can only hold a portion of their clients’ assets at all times. Coinbase always holds 1 ፡ of client assets. This means our funds are available 24 hours a day, 7 days a week, 365 days a year.
  • We have explained our retail user agreementWe always protect our customers’ money legally and personally. We have also recently updated our Retail Consumer Agreement to explicitly enforce Article 8 of the UCC – the legal protection that our institutional clients rely on to protect their property in the event of a parental loss. This is not a change in the way we work. We believe that digital assets in our possession have always been Article 8 financial assets, but we have explained this without any doubt.

We hope the above descriptions give our client – confidence and transparency. We apologize for any inconvenience this may have caused. Although it is a response to the instructions of an important regulator of any crypto-currency trading in the public domain, it has caused unnecessary uncertainty and anxiety.

The crypto space is flexible, and we always want to use the best structures to ensure that our clients’ assets are managed as securely as possible.

As Brian shared with our team a few weeks ago, the volatility in crypto – or any market – is inevitable. We cannot control it, but we have a plan for it. That is why, over the past 10 years, in cryptocurrencies, Coinbase has focused on building – crossing the highs and renewing the low.

Nothing has changed about Coinbase. If anything, we are in a stronger position than we were a few months or a year ago – and we will continue to work to make it easier and safer for people to participate in crypto. # Long Crypto

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