Experienced futures trader Peter Brandt spoke out against San Francisco-based cryptocurrency exchange Coinbase, saying the trading platform deserves to go bankrupt in an ongoing bear market.
Brandt is only concerned about Coinbase users who still keep their crypto assets on the popular trading platform because they could be declared “unsecured creditors” in the event of bankruptcy.
According to him, the platform’s bankruptcy would play into the hands of its team, as an unfortunate development would allow them to “steal users’ crypto-assets.”
If anyone deserves bankruptcy, it’s @coinbase. Unfortunately, their BTC-owning customers will become unsecured creditors and their bitcoins will likely be stolen,” Brandt wrote on Twitter.
Brandt made this statement in response to a tweet from crypto-enthusiast @TuurDemeester with a list of cryptocurrency-related companies that will suffer as the crypto market continues to decline. Note that Coinbase was not on that list.
The negative trend in the cryptocurrency market prompted companies from this sector to take tough measures, including massive layoffs.
Coinbase was no exception, as it cut 25% of its staff, with 260 employees laid off. Butwhat exactly did this American crypto-exchange incur the wrath of a famous trader?
Most likely, it has to do with the company’s statement in its first quarter financial report that “in case of bankruptcy, customers’ crypto-assets may be subjected to bankruptcy proceedings. Such customers will be treated as unsecured creditors.”