{"id":62649,"date":"2022-05-16T05:57:52","date_gmt":"2022-05-16T10:57:52","guid":{"rendered":"https:\/\/olduvai.ca\/?p=62649"},"modified":"2022-05-16T05:57:52","modified_gmt":"2022-05-16T10:57:52","slug":"if-you-thought-the-coinbase-bankruptcy-disclosures-were-bad","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=62649","title":{"rendered":"If you thought the Coinbase bankruptcy disclosures were bad\u2026"},"content":{"rendered":"
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If you thought the Coinbase bankruptcy disclosures were bad\u2026<\/a><\/h3>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n
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Just wait \u2019til you see your government\u2019s bail-in rules<\/strong><\/p>\n

One of the subplots that made for a bad week in crypto included a largely manufactured crisis around \u201cThe Coinbase bankruptcy disclosure\u201d.\u00a0 After posting an earnings miss, the next shoe to drop was the discovery in the latest version of the Coinbase Terms of Service, the addition of text that included the following:<\/span><\/p>\n

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\u201cCustodially 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\u201d<\/i><\/p>\n<\/blockquote>\n

This verbiage became a big deal with every corporate media outlet dumping all over it. It trended on Twitter and quickly went viral, almost as if this was some sort of revelation.<\/p>\n

It\u2019s not. It\u2019s basically the oldest adage in crypto,\u00a0\u201cnot your keys, not your coins\u201d<\/strong><\/em>\u00a0spelled out in writing.<\/p>\n

Do you really think if you\u2019re holding your crypto on some exchange that suddenly becomes insolvent it\u2019s going to make a difference if a paragraph to that effect appears in the ToS or not? Good thing Mt Gox or QuadrigaCX didn\u2019t have that in their ToS otherwise everybody with assets in either exchange would have been really screwed, right?<\/p>\n

You\u2019re screwed no matter what. At least Coinbase is calling your attention to it.<\/p>\n

Don\u2019t hold your crypto on the exchange, any exchange, full stop.<\/strong>\u00a0Even the largest crypto exchange CEOs will tell you that.<\/p>\n

But if you\u2019re one of those people for whom this is something to be up in arms about, I\u2019ve got news for you:<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n","protected":false},"excerpt":{"rendered":"

If you thought the Coinbase bankruptcy disclosures were bad\u2026 Just wait \u2019til you see your government\u2019s bail-in rules One of the subplots that made for a bad week in crypto included a largely manufactured crisis around \u201cThe Coinbase bankruptcy disclosure\u201d.\u00a0 After posting an earnings miss, the next shoe to drop was the discovery in the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,6],"tags":[1074,11289,1361,63,32652,379,23383],"class_list":["post-62649","post","type-post","status-publish","format-standard","hentry","category-economics","category-liberty","tag-bail-ins","tag-bank-bail-in","tag-bankruptcy","tag-banks","tag-bombthrower","tag-government","tag-mark-e-jeftovic"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/62649","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=62649"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/62649\/revisions"}],"predecessor-version":[{"id":62650,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/62649\/revisions\/62650"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=62649"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=62649"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=62649"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}