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by astrange 1184 days ago
> > When Coinbase files for bankruptcy, crypto deposits will be at the back of the line. They are unsecured creditors. > I'm aware. This has nothing to do with your point about "stealing" deposits like other exchanges (e.g. FTX), and is irrelevant to stock-based compensation.

If Coinbase takes money from the people furthest back in line (unsecured creditors) and gives it to people second furthest back in line (equityholders), and the unsecured creditors think they're first in line (bank depositors)… that sounds like stealing to me!
1 comments
piqi 1184 days ago
I doubt common shareholders would get anything at all in a case of bankruptcy.

> the unsecured creditors think they're first in line (bank depositors)

Coinbase isn't a bank, and customers' digital assets aren't bank deposits.

> that sounds like stealing to me!

Welp... You're wrong!

As for real banks, feel free to look up current events on "uninsured deposits" at regional banks. You might say banks are "stealing" deposits from accounts >$250k too!

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astrange 1184 days ago
> I doubt common shareholders would get anything at all in a case of bankruptcy.

They get their already-paid dividends or proceeds of what they already sold.

> As for real banks, feel free to look up current events on "uninsured deposits" at regional banks. You might say banks are "stealing" deposits from accounts >$250k too!

None of them have lost a cent.

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piqi 1184 days ago
> They get their already-paid dividends or proceeds of what they already sold.

More irrelevant commentary.... COIN doesn't have dividends, and.... yes.... when you sell the stock.... you are no longer a shareholder.... this needed to be said?

> None of them have lost a cent.

Again.... look up the current events. Just today the Treasury secretary said that additional bank failures won't get the special treatment the big depositors got at the failed banks. They should NOT have been insured above 250k.

In your words, you might say the bank STOLE the money from depositors, and the government reimbursed special depositors for their loses. It was NOT stolen, though. The bank was mismanaged. The government should not have covered the loses above 250k per depositor. The big depositors took a risk keeping that much money there.

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