“Coinbase users would become “general unsecured creditors,” meaning they have no right to claim any specific property from the exchange in proceedings.”
Coinbase holds $256 billion for its customers, and the fine print says those customers stand in line with every other creditor if it goes under. The CEO tweeted that there is “no risk of bankruptcy.” The only reason anyone knows is that new SEC rules forced the disclosure. Not your keys, not your coins, and now it’s in the earnings report.