Coinbase CEO Brian Armstrong is setting out to quell investor fears as crypto exchanges see massive outflows after rival firm FTX filed for bankruptcy.
In a series of tweets, the head of the largest US-based crypto exchange explains why Coinbase is different from other firms in the industry.
“Lots of fear out there in the markets. It’s important people remember how different Coinbase is in moments like this:
1/ Based in the US
2/ Customer assets backed 1:1 (as shown in our public company financials.
3/ Well capitalized with $5 billion balance sheet (as shown in our last 10Q).”
Crypto investors are withdrawing their assets from exchanges amid fears of losing their funds after FTX, one of the industry’s largest firms became insolvent. The implosion of the Bahamian firm also resulted in crypto exchanges facing increased scrutiny over their finances, prompting Coinbase as well as other leading platforms, including Kraken and Binance, to publish their proof of reserves.
In a newly-released transparency report, Coinbase reveals that between the fourth quarter of 2021 and the third quarter of this year, the number of requests it received from law enforcement and government agencies increased by 66%. More than 95% of these requests are related to criminal enforcement and less than 5% are civil or administrative in nature.
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Featured Image: Shutterstock/IR Stone
