> Among the people who resigned this fall - to protest new internal policies - were 4 of the 7 people on the most critical security team, the "key management te

> Among the people who resigned this fall - to protest new internal policies - were 4 of the 7 people on the most critical security team, the "key management team," sources told me. > The "key management team" is responsible for securing the cryptographic keys to Coinbase's cold wallets, where most of the company's crypto tokens are held -- somewhere in the neighborhood of $30 billion I was told. Bitcoin's history is littered with exchanges that self-destructed over one kind of problem or another with keys. If true, the reports are very concerning. Contrary to popular misconception, users of Coinbase are NOT insured for losses of funds resulting from loss or compromise of Coinbase's cold storage keys. Should something happen to the keys, Coinbase users will have no recourse for getting back the bitcoin lost on the exchange.