Coinbase CEO Brian Armstrong clarified the company’s “bankruptcy” statements in its filing with the US Securities and Exchange Commission (SEC).
In its most recent !0-Q statement to the SEC, Coinbase stated:
“Since crypto assets held in trust are treated as property belonging to an institution that has entered the bankruptcy process, if we go into a bankruptcy process, the crypto assets we hold on behalf of our customers may also become a part of the bankruptcy process and our customers can be considered as unsecured creditors.”
According to the document submitted by Coinbase, this means that customers can keep their money in Coinbase. “risky” may lead to thinking that this will happen, and this situation will inform Coinbase. can cause financial losses.
Coinbase customers and cryptocurrency followers ask why in Coinbase’s notice to the SEC statements about a possible bankruptcy process While I was wondering what happened, the answer to this issue came from the company’s CEO, Brian Armstrong.
Armstrong said on Twitter: companies that are publicly traded companies that hold crypto assets on behalf of third parties by the SEC for a new stipulated that stated.
Due to this new requirement, called SAB 121, the companies in question, in their notification to the SEC, the bankruptcy situation must be presented as a risk factor.
Explaining that this is a formal requirement, Armstrong said, “We don’t risk going bankrupt.” he added.