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From the Kraken terms of service: > None of the Digital Assets in your Kraken Account are the property of Payward. Payward does not represent or treat assets i
by oldgradstudent 4y ago
From the Kraken terms of service:
> None of the Digital Assets in your Kraken Account are the property of Payward. Payward does not represent or treat assets in your Kraken Account as belonging to Payward. However, a court may disagree with Payward’s treatment of your assets and subject them to claims of Payward’s creditors.
This will be tested in court. Kraken's liabilities matter.
- smeej 4y agoI didn't say they didn't matter, and I explicitly did say whether a court would agree had not been decided. What I also said is that proof of reserves is not nothing. Kraken has proven they do have your coins. FTX did not. This does not mean Kraken is invulnerable. It's just not vulnerable to the vulnerability that killed FTX.
- oldgradstudent 4y ago> This does not mean Kraken is invulnerable. It's just not vulnerable to the vulnerability that killed FTX. FTX could have borrowed using these assets as collateral, and the result would have been very similar, but FTX could have posted a proof of reserves. You're right that the court would have had more freedom to act, though. In any case, the news about the supposed hack may make the argument moot.