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Surprised that customer positions aren't considered loans with first rights over all other lenders in a bankruptcy proceeding. The company shouldn't be playing around with these, but based on this statement it sounds like they are doing something odd and trying to run a fractional reserve system, or leveraging customer deposits for other high risk activity such that the money may not be there.

Makes me think that I should move my crypto back to my own wallet/sell the crypto.




You probably should. You wouldn't give Coinbase your SSH private keys, crypto keys are no different.


They don't have my keys, but they are holding the asset as a custodian. From a practical perspective, I'm not certain they are actually holding my BTC in a dedicated wallet or a central wallet with an off blockchain ledger.


You should. Crypto is about to prove (again) why banking needs regulatory bodies.




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