Coinbase’s Chief Legal Officer Responds to Concerns About cbBTC’s Terms of Service
Coinbase Chief Legal Officer Paul Grewal has responded to the recent fear, uncertainty and doubt (FUD) surrounding the user terms of service for Coinbase's newly launched cbBTC “wrapped Bitcoin” product – assuring that Coinbase will fully reimburse customers if the exchange loses its core. Bitcoin (BTC)
The clarification came after an individual highlighted what they believed to be a troubling provision in CBBTC's user agreement – stating that Coinbase would not reimburse customers for the full amount of Bitcoin lost due to malicious activity or unforeseen events, but would instead give customers a “proportionate” amount. The remaining share of BTC.
Source: Pleader
In a statement to Cointelegraph's Alex O'Donell, Coinbase's chief legal officer confirmed that the policy limits the exchange's liabilities from complex trades and external losses incurred by leveraged customers.
For example, traders who use CBBTC as collateral on lending platforms and lose their original Bitcoin due to malicious activity will be fully reimbursed by Coinbase for the lost Bitcoin, but will not recover any fees or financial losses. The loan itself.
Source: Paul Grewal
RELATED: Coinbase's cbBTC wraps up, Bitcoin comes to Solana — Breakpoint 2024
Coinbase cbBTC starts in controversy
On September 12, Coinbase launched cbBTC – an alternative or encrypted version of Bitcoin – in the United Kingdom, Australia, Singapore and all US states except New York.
The announcement comes amid controversy over BitGo's Wrapped Bitcoin (WBTC) product and Tron (TRX) founder Justin Sun's involvement in the project.
On August 9, BitGo announced that it was entering into a multi-jurisdictional agreement between Hong Kong, Singapore and the United States that would see asset protection areas for the distribution of Bitcoin.
Following widespread concerns about Sun's involvement in the project, BitGo CEO Mike Belshey has confirmed to the crypto community that Sun does not have the ability to move funds.
Source: Mike Belshe
Since then, the Skye – formerly known as Maker – community has voted to remove WBTC from the platform in an administrative vote, and Coinbase's cbBTC has become the third largest sealed BTC token in just one week.
Magazine: Turns Bitcoin into a Worse Version of Ethereum: Can We Fix It?
