Crypto billionaire Brian Armstrong explains why Coinbase is different from the rest of the industry amid growing fear

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Coinbase CEO Brian Armstrong is set to allay 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 companies in the industry.

Lots of fear in the markets. It’s important for people to remember how different Coinbase is at times like this:

1/ Based in the United States

2/ Customer assets secured 1:1 (as shown in our public company financial statements.

3/ Well capitalized with a balance sheet of $5 billion (as shown in our last 10Q).

Crypto investors are withdrawing their assets from exchanges, fearful of losing their funds after FTX, one of the biggest companies in the industry, went insolvent. The implosion of the Bahamian company has also led to increased scrutiny by crypto exchanges on their finances, prompting Coinbase along with other top platforms including Kraken and Binance to release their proof of reserves.

In a recently published 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 law enforcement and less than 5% are of a civil or administrative nature.

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Feature image: Shutterstock/IR Stone

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