In May 2022, Coinbase, the largest cryptocurrency exchange in the United States, made a shocking disclosure to the SEC that sent shockwaves through the crypto space. The company warned that its customer assets could be subject to proceedings if it went bankrupt, raising questions about the risks of investing in Coinbase. This statement caused Coinbase shares to drop more than 27% after the filing, and left many customers wondering about the fate of their crypto holdings. With Coinbase serving as a major gateway for entry into the world of cryptocurrencies, it is essential to understand what would happen if the company went out of business and what would happen to your crypto assets in that scenario. In this article, we will explore the potential outcomes if Coinbase were to go bankrupt and the steps you can take to protect your investments.
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