Crypto Market Is Bathing Blood, Legendary Trader Calls BTC Owners Potentially Losing Their Assets If Exchanger Goes Bankrupt

Crypto volatility has been quite high in recent days. (photo: doc. Pixabay)

JAKARTA – One of the giant crypto exchanges in the United States, Coinbase, is reported to have suffered a loss of 430 million US dollars (approximately IDR 6.4 trillion) in its financial statements for the first quarter of 2022.

Knowing Coinbase was losing money, legendary trader Peter Brandt warned that users of the Coinbase platform could potentially lose all their Bitcoins if the crypto exchange went bankrupt.

Brandt has been a trader since 1975. He rose to prominence for predicting the crypto market crash in 2018. The trader also warned that Coinbase would go bankrupt in March 2021, and the recent disclosure of the exchange's financial situation has brought his projections forward.

According to DailyCoin, apart from reporting a $1.98 loss per share on the $1.165 billion sale, Coinbase has come under fire from the public for the bankruptcy included in the report.

“In the event of bankruptcy, the crypto assets we hold on behalf of our clients may be subject to bankruptcy proceedings. Such customers will be treated as our general unsecured creditors,” Coinbase wrote.

In response to the criticism from Peter Brandt, Coinbase CEO Brian Armstrong issued a statement defending the company. Armstrong assures users of the Coinbase platform and the crypto community at large that funds are safe on the exchange.

Coinbase bosses also revealed that the platform is not at risk of bankruptcy. Armstrong stressed that he would update a number of requirements to provide protection to users of the Coinbase platform.