Coinbase, America’s largest cryptocurrency exchange, is under severe fire following its Quarter 1 2022 Performance Report, in which it posted a net loss $430 Million for the first quarter.

Customers of Coinbase (NASDAQ) Could Lose All Their Crypto

Following the discolure of the significant losses incurred by Coinbase, Peter Brandt, a legendary trader who has been trading the markets since 1975, has warned that the exchange’s users could lose all their if the exchange were to go bankrupt.

Brandt, who became famous for predicting the 2018 crypto market crash, warned that Coinbase was going bankrupt in March 2021, and the recent revelation of the exchange’s financial situation has brought his projections to the fore.

Coinbase also reported a $1.98 loss per share for sales of $1.165billion, and was criticised by the general public for its inclusion in the annual report of a bankruptcy notice. The following excerpt is taken from the report:

“In the event of a bankruptcy, the crypto assets we hold in custody on behalf of our clients could be subject to bankruptcy proceedings. Such customers would be treated as our general unsecured creditors.”

Brian Armstrong Defends Coinbase

After the criticisms, Coinbase CEO Brian Armstrong defended the exchange. He assured crypto-space users that they were safe and secure with Coinbase.

Armstrong said that Coinbase has no chance of going bankrupt. However, he added that the exchange would update its users’ terms to guarantee client protection at all times, even in the instance of a “black swan event.”

The Flipside

• Coinbase dispelled rumors of the exchange teaming with another company. Robinhood (NASDAQ:),You can even engage in an acquisition

What You Need to Care About

Armstrong clarified that Coinbase Prime users and Custody customers have strong legal protections to protect their assets at any cost.

Continue reading on DailyCoin