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Coinbase warns users could lose their crypto holdings if company goes bankrupt

businessinsider.com

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Re: Coinbase warns users could lose their crypto holdings if company goes bankrupt

#31

Post by JumpCrisscross »

polski-g wrote: post #25
Finnucane wrote: post #22

Earlier quoted context omitted.

The WAMU bankruptcy was difficult for the FDIC to manage, and there was no ready buyer to take the remains. But if there had been no FDIC to manage it, the result would have been catastrophic failure. Like Lehman, but with more retail banking customers getting wiped out.

Congress would have given the FDIC a blank check if they needed.

> Congress would have given the FDIC a blank check if they needed

Congress already did this. The FDIC reserve fund is mostly an accounting and accountability thing. The act creating the FDIC gives it the explicit backing of the United States’ “full faith and credit.”

Re: Coinbase warns users could lose their crypto holdings if company goes bankrupt

#32

Post by JumpCrisscross »

0daystock wrote: post #10
ceejayoz wrote: post #8

Earlier quoted context omitted.

> Are you pretending FDIC covers more than 1% of all deposits? It doesn't have to cover all of deposits , it has to cover failures . The chances of every bank in the country simultaneously collapsing is slim (and you've got bigger problems at that point than your balance). No one's lost a penny worth of FDIC-insured funds since 1933.

It's amazing how quickly we forget history, apparently ignoring the bank crisis of the 1980s and complete failure of FSLIC. Multiple banks collapsed costing tax payers billions of dollars and the institution the government created to insure deposits failed spectacularly.

> and complete failure of FSLIC. Multiple banks

The S&L crisis involved S&Ls [1]. Not banks [2]. That was the problem. People making up non-bank “banks” and then blowing them up in the exact way the banking regulations they were looking to escape were written to avoid. Sound familiar?

S&Ls were covered by FSLIC. It differs from the FDIC in an important way: it was not backed by the “full faith and credit” of the U.S. That makes it more like Sallie Mae than the FDIC. (Indeed, it comes out of

[1] https://en.m.wikipedia.org/wiki/Savings_and_loan_association

[2] Banks also failed. But they were resolved in an orderly way by the FDIC. Nothing there threatened to go systemic. https://www.fdic.gov/bank/historical/history/3_85.pdf

Re: Coinbase warns users could lose their crypto holdings if company goes bankrupt

#33

Post by jrnichols »

mikece wrote: post #3

A whole bunch of people could learn the hard way the difference between "custodial wallets" and "your own wallet" very, very quickly. I've been telling friends who are into BTC to get their holdings off of Coinbase and into their own wallet (or cash out to fiat and disconnect their bank account from Coinbase -- I have no idea if claw-back is a thing here but why wait to find out?). Personally I moved holdings to Blue…

> I've been telling friends who are into BTC to get their holdings off of Coinbase and into their own wallet

I have absolutely no idea how to even do that. :( Is there a safe way to do it?

Re: Coinbase warns users could lose their crypto holdings if company goes bankrupt

#34

Post by SpikeDad »

jrnichols wrote: post #33
mikece wrote: post #3

A whole bunch of people could learn the hard way the difference between "custodial wallets" and "your own wallet" very, very quickly. I've been telling friends who are into BTC to get their holdings off of Coinbase and into their own wallet (or cash out to fiat and disconnect their bank account from Coinbase -- I have no idea if claw-back is a thing here but why wait to find out?). Personally I moved holdings to Blue…

> I've been telling friends who are into BTC to get their holdings off of Coinbase and into their own wallet I have absolutely no idea how to even do that. :( Is there a safe way to do it?

I just cashed my holdings out and transferred the cash to my bank. I'm done with crypto for the foreseeable future.

Re: Coinbase warns users could lose their crypto holdings if company goes bankrupt

#35

Post by aaaaaaaaata »

SpikeDad wrote: post #34
jrnichols wrote: post #33

Earlier quoted context omitted.

> I've been telling friends who are into BTC to get their holdings off of Coinbase and into their own wallet I have absolutely no idea how to even do that. :( Is there a safe way to do it?

I just cashed my holdings out and transferred the cash to my bank. I'm done with crypto for the foreseeable future.

Selling at the bottom is...difficult to empathize with.

Re: Coinbase warns users could lose their crypto holdings if company goes bankrupt

#36

Post by stouset »

labrador wrote: post #28
ceejayoz wrote: post #26

Earlier quoted context omitted.

The jury is out for a while on whether the result was "survived" or "gave a better playbook for next time". Those on the left would tend to argue the lack of consequences thus far encourages a more competent attempt.

I'm confident that the people in the system have woken up to the fact that a large scale attack can come from within the system, which was previously unthinkable, and adjustments will be made to help prevent it from occurring again.

I really wish I saw what you saw. Instead, I see utter complacency.
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