> Your funds are safe at Coinbase, just as they’ve always been.
You won't lose your funds, don't worry.
> For our retail customers, we’re taking further steps to update our user terms such that we offer the same protections to those customers in a black swan event. We should have had these in place previously, so let me apologize for that.
Unless we have your keys, in which case I'm sorry we're not protecting you yet (but don't worry, everything's fine).
> We have no risk of bankruptcy
Said directly after their worst quarter to date. Always a lie regardless.
> however we included a new risk factor based on an SEC requirement called SAB 121, which is a newly required disclosure for public companies that hold crypto assets for third parties.
A rule made specifically for their type of companies that clarifies risks of storing assets in a non regulated bank.. somehow shouldn't make you scared that your assets might get taken away since it's very "unlikely".
Edit: All those maybe's and probably's are the most troublesome part though.
Before reading that tweet chain I was on the “SEC always requires horribly pessimistic outlooks” and now I’m in the “they’re going bankrupt very soon” camp.
In said earnings report, they:
- Posted a net loss of $430m (defying analyst expectations of a profit)
- reported a decrease in monthly active users.
- reported a decrease in transaction volume.
Their bonds have been downgraded, they are facing increased financial regulation and two of the largest stablecoins have become unpegged in the last few days.
Coinbase then files an SEC disclosure stating in plain terms that it will use the assets of its users to pay off secured creditors in the event of a bankruptcy.
His twitter thread was definitely not a reasonable response.
Write a memo, have the lawyers review it, post it on Coinbase.com, tweet a link, do a press release, etc.