Coinbase new disclosure does not mean crypto firm risks bankruptcy: CEO

Coinbase would take further steps to ensure it offered protection for its retail customers, says Brian Armstrong.

Coinbase chief executive said a disclosure in its latest quarterly filing did not indicate the largest U.S. cryptocurrency exchange faced a bankruptcy risk, and it had been made to meet a regulatory requirement.

Brian Armstrong's comments on late Tuesday came after the company said in the event of bankruptcy, crypto assets held by the exchange could be considered property of the bankruptcy proceedings and customers could be treated as unsecured creditors.

An unsecured creditor would be one of the last to be paid in any bankruptcy and last in line for claims. Coinbase said its disclosure might lead customers to believe that