(Reuters) – Coinbase’s chief executive stated that a quarterly disclosure did not reveal that the crypto exchange operator was at risk of bankruptcy and had been prepared to comply with a U.S. Securities and Exchange Commission requirement.

After Coinbase on Tuesday stated that crypto assets owned by the exchange might be considered part of bankruptcy proceedings, Brian Armstrong responded to this statement. Customers could also be treated as generalunsecured creditors.

Unsecured creditors would be the first to receive any payment in bankruptcy, and also be last in line for any claims.

Coinbase’s shares fell 15% on Tuesday in extended trading. The company also missed its first quarter revenue estimates and suffered a loss due to turmoil in the global markets.

Coinbase is the U.S.’s biggest cryptocurrency exchange. It stated its disclosure may lead customers believe keeping their coins there would be “more risky”, which could in turn have a material impact on its financial position.

Armstrong stated that there is no chance of bankruptcy after the disclosure (NYSE:). He claimed it had been made in compliance with SEC rules.

While he claimed it unlikely that “a court would consider customer assets as part the company’s bankruptcy proceedings”, it is possible.

He stated that Coinbase will take additional steps to protect its retail customers.

Armstrong stated that “We should’ve updated our retail terms earlier, and we didn’t communicate proactively when the risk disclosure was added.” “My deepest apologies.”