Well-known trader Peter Brandt has harshly criticized the Coinbase crypto exchange after the publication of the latest financial report. He warned users of the service that bitcoins would no longer belong to them if the site suddenly went bankrupt. Thus, the specialist repeated the words of the head of the platform, Brian Armstrong.
The expert gave his comment in response to the publication of the Coinbase Q1 2022 profitability report. Earlier it became known that the company’s net loss amounted to $430 million. After that, the trading platform was sharply criticized by the crypto community. Users were shocked that since going public in April 2021, the exchange has lost almost half a billion US dollars.
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The report showed: that Coinbase recorded a net loss of 27%, compared to the same period last year. In addition, the number of Coinbase users making monthly transactions fell by 19% (from 11.4 million to 9.2 million). After the publication of the report, the value of the company’s shares fell by 16% (from $73 to $61).
Among other things, the report stated: in the event of bankruptcy, the exchange will keep the digital assets of its customers as property. In effect, this means that users will be treated as unsecured creditors of the company.
The head of Coinbase, Brian Armstrong, quickly responded to the attacks from the public. He assured that the funds of users are safe, and stressed that there are no risks of going bankrupt. The entrepreneur added that the publication of information of this nature is a requirement of the US Securities and Exchange Commission (SEC).
Earlier edition reported: market experts have recorded that several large holders of the bitcoin cryptocurrency at once withdrew very large amounts from the Coinbase trading platform. According to the WhaleAlert service, about $700 million in digital assets were transferred in total.