Coinbase warns that your crypto could be lost if they go bankrupt. Following the announcement of the earnings, Coinbase shares tumbled 15.6 percent in after-hours trading.
Coinbase Global's poor first-quarter financial report. which the U.S.'s biggest cryptocurrency exchange recorded a quarterly deficit of $430 million and a 19 percent reduction in monthly users—contains an update on the hazards of using its service that may startle its millions of users.
Coinbase warns that if the cryptocurrency platform goes bankrupt, users would lose all cryptocurrency in their accounts.
In its earnings statement (read below) on Tuesday, Coinbase stated that it held $256 billion in both fiat currencies and cryptocurrencies on behalf of the customers. However, the exchange warned that "the crypto assets we hold in custody on behalf of our customers could be subject to bankruptcy proceedings" if it ever went bankrupt. Users of Coinbase would become "general unsecured creditors," whi...