Bloomberg Tax
Free Newsletter Sign Up
Bloomberg Tax
Welcome
Go
Free Newsletter Sign Up

Coinbase Says No Bankruptcy Risk Amid Black Swan Event (Correct)

May 11, 2022, 11:19 AM

Coinbase Global Inc. Chief Executive Officer Brian Armstrong said there is “no risk of bankruptcy” for the largest U.S. cryptocurrency exchange, even amid a “black swan” event.

Bitcoin Holds Rebound as Crypto World Awaits Stablecoin Rescue

Brian Armstrong
Photographer: Samyukta Lakshmi/Bloomberg

A filing late Tuesday by Coinbase included a “new risk factor” based on recent Securities and Exchange Commission requirement for public companies that hold crypto assets for third parties.

“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 ...