Brian Armstrong: Coinbase does not engage in risky activities such as abusing user assets

ChainCatcher news, Coinbase co-founder and CEO Brian Armstrong stated on social media that the FTX incident "stressed me out a lot," and that Coinbase has no substantial contact with FTX or FTT (nor with Alameda). The FTX incident appears to be the result of risky business practices, including conflicts of interest between deeply intertwined entities and the misuse of customer funds (lending out user assets). Coinbase does not engage in such risky activities and will not use customer funds for anything unless instructed by the customer; users can withdraw their money at any time.

Brian Armstrong reiterated the importance of compliance and regulation for cryptocurrency exchanges: regulators have focused on their respective domestic markets, while customers have shifted their attention to offshore businesses that are less transparent and carry greater risks. There should be continued collaboration with policymakers to establish reasonable regulations for centralized exchanges/custodians in each market. (Source link)