If you store your crypto on their platforms, you are classified as an unsecured creditor. The platform holds your assets on their consolidated corporate wallets, meaning you do not have direct onchain ownership. During restructuring, your balances may be frozen for years or liquidated. The absolute defense is to move all wealth not needed for active trades into self-custody hardware wallets.
What happens if a major exchange like Quidax, Luno, or Coinbase goes bankrupt?
Written by
in