– Coinbase CEO Brian Armstrong has apologized for seemingly neglecting the platforms retail customers when it comes to protecting them from a catastrophic so-called black swan event.
– While addressing bankruptcy concerns stoked by the companys alarming Q1 filing, Armstrong admitted that, while Coinbases Prime and Custody customers have strong legal protections in their terms of service, retail customers didnt.
– The bankruptcy concerns stemmed from the inclusion of a new risk factor in Tuesdays filing. The inclusion, said Armstrong, isnt a sign of impending financial doom but simply a new requirement of the US Securities and Exchange Commission (SEC).
– This weeks filing made grim reading for Armstrong and anybody involved with Coinbase, heralding the first net loss since it went public last year. A $430 million net loss, to be precise.
– In an earnings call on Tuesday, Armstrong said: The good news is that as a crypto company, weve lived through many different cycles in crypto, including major drawdowns, which I think make us well suited to operate through these environments.