Coinbase submits amicus brief urging the court to protect customer assets in the Prime Trust bankruptcy case

ChainCatcher news, Coinbase has submitted an amicus brief regarding the ongoing bankruptcy case of Prime Trust, urging the court to support legal protections for customer assets held by the trustee. Coinbase's Chief Legal Officer Paul Grewal announced this document, emphasizing that customer assets should not be included in the trustee's bankruptcy proceedings.

The company advocates for the enforcement of Section 8 of the Uniform Commercial Code (UCC), which ensures that assets held by the trustee belong to the customers, not to the trustee itself. Coinbase argues that both its user agreement and Prime Trust's user agreement clearly state that the assets remain the property of the customers. Bankruptcy should not alter these agreements or reclassify the assets as part of the trustee's property.

The legal document will prevent customer funds from being included in Prime Trust's bankruptcy estate. Coinbase insists that upholding UCC Section 8 is crucial for maintaining trust in the trustee, whether in the digital finance or traditional finance sectors.