Coinbase CEO Says 'We Have No Risk of Bankruptcy'

Coinbase  (COIN)  is in the line of fire. 

The popular crypto exchange sits at the center of the rout in the cryptocurrency market, which like the stock market is getting hammered by investors’ intensifying fears about slowing growth.

In the company’s first-quarter results, filed in its 10-Q document at the Securities and Exchange Commission, there’s this:

“Because custodially held crypto assets may be considered to be the property of a bankruptcy estate, in the event of a bankruptcy, the crypto assets we hold in custody on behalf of our customers could be subject to bankruptcy proceedings and such customers could be treated as our general unsecured creditors,” Coinbase wrote.

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