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> Coinbase users would become “general unsecured creditors,” meaning they have no right to claim any specific property from the exchange in proceedings. Their f
by xur17 4y ago
> Coinbase users would become “general unsecured creditors,” meaning they have no right to claim any specific property from the exchange in proceedings. Their funds would become inaccessible.
I'm curious about this bit - are they required to structure their company in this way, or was it a choice that they made?
- nmfisher 4y agoPerhaps someone with closer knowledge of USA finance law can fill me in - is there anything legal preventing Coinbase acting as trustee for customers as beneficiary? Surely that would avoid this situation (though there are probably commercial considerations why they don’t want to do that).
- xur17 4y agoAnd if there isn't, I'm curious if there are other US exchanges that are structured in such a way (acting as a trustee for customers).