• Market Cap: $1,089,351,806,345.48
  • 24h Vol: $81,625,628,226.69
  • BTC Dominance: 45.79%
XBT.Market
Advertisement
  • Home
  • Coins MarketCap
  • Crypto Exchanges
  • Crypto Calculator
  • Top Gainers and Loser
  • News
  • Contact Us
No Result
View All Result
XBT.Market
No Result
View All Result
Home Bitcoin

Crypto firms facing insolvency ‘forgot the basics of risk management’ — Coinbase

Jon Hartney by Jon Hartney
July 20, 2022
in Bitcoin, Blockchain, Business, Market
0
Crypto firms facing insolvency ‘forgot the basics of risk management’ — Coinbase
189
SHARES
1.5k
VIEWS
Share on FacebookShare on Twitter

“The issues here were foreseeable and actually credit specific, not crypto specific in nature,” said three department heads at Coinbase.

Department heads at Coinbase have weighed in on the market downturn amid solvency concerns around Three Arrows Capital, crypto lending firm Celsius, and Voyager Digital, saying the crypto exchange had “no financing exposure” to the companies.

In a Wednesday blog post, Head of Coinbase Institutional Brett Tejpaul, Head of Prime Finance Matt Boyd, and Head of Credit and Market Risk Caroline Tarnok said Coinbase had not engaged in the “types of risky lending practices” exhibited by Three Arrows Capital, Celsius, and Voyager, claiming the firms were examples of practicing “insufficient risk controls.” According to the trio, crypto companies faced the possibility of insolvency caused by “unhedged bets,” large investments in Terra, and overleveraging with venture capital firms.

Related articles

OpenAI CEO highlights South Korean chips sector for AI growth, investment

OpenAI CEO highlights South Korean chips sector for AI growth, investment

June 10, 2023
Nigeria to tax crypto, digital assets 10% on capital gains: Experts react

Nigeria to tax crypto, digital assets 10% on capital gains: Experts react

June 10, 2023

“The issues here were foreseeable and actually credit specific, not crypto specific in nature,” said Tejpaul, Boyd, and Tarnok. “Many of these firms were overleveraged with short term liabilities mismatched against longer duration illiquid assets. We believe these market participants were caught up in the frenzy of a crypto bull market and forgot the basics of risk management.”

A court in the British Virgin Islands reportedly ordered the liquidation of Three Arrows Capital. Voyager Digital filed for bankruptcy in July, later announcing its plan to restore users’ crypto could depend on funds from any proceedings with Three Arrows Capital, which failed to repay a 15,250 Bitcoin (BTC) and 350 million USD Coin (USDC) loan. Crypto lending platform Celsius also filed petitions for Chapter 11, with the platform’s lawyers seemingly using an unusual legal argument to avoid restoring users’ funds.

Related: Coinbase secures crypto asset service provider approval in Italy

Though Coinbase said it had “no exposure to client or counterparty insolvencies” and “no changes in access to credit” for its users, the crypto exchange is still operating within a bear market that Grayscale predicted could last until 2023. Since May 4, shares of Coinbase stock have fallen more than 42% to reach $75.27 at the time of publication. CEO Brian Armstrong also announced in June that the exchange planned to cut 18% of its staff, citing concerns about a possible crypto winter.

Read Entire Article
Tags: CointelegraphCryptocurrencyInvestmentMining Bitcoin
Share76Tweet47

Related Posts

OpenAI CEO highlights South Korean chips sector for AI growth, investment

OpenAI CEO highlights South Korean chips sector for AI growth, investment

by Jon Hartney
June 10, 2023
0

Sam Altman confirmed ongoing discussions with chipmaking companies like Samsung Electronics and expressed his

Nigeria to tax crypto, digital assets 10% on capital gains: Experts react

Nigeria to tax crypto, digital assets 10% on capital gains: Experts react

by Jon Hartney
June 10, 2023
0

The Act aims to enhance fiscal transparency, boost revenue and recognize cryptocurrencies as legitimate assets

Ooki DAO to shut down after ‘precedent setting’ court battle with CFTC

Ooki DAO to shut down after ‘precedent setting’ court battle with CFTC

by Jon Hartney
June 10, 2023
0

The CFTC highlighted that “critically, in a precedent-setting decision” the Ooki DAO was held in court as

Scammers steal nearly $1M after hijacking 8+ prominent crypto twitter accounts

Scammers steal nearly $1M after hijacking 8+ prominent crypto twitter accounts

by Jon Hartney
June 10, 2023
0

The group of scammers have recently taken over accounts belonging to the founder of Pudgy Penguins, the CTO of OpenAI

SEC charges against Binance and Coinbase are terrible for DeFi

SEC charges against Binance and Coinbase are terrible for DeFi

by Jon Hartney
June 10, 2023
0

The SEC’s charges against Binance and Coinbase could have far-reaching consequences for decentralized finance

Load More
  • Trending
  • Comments
  • Latest
NEXO risks 50% drop due to regulatory pressure and investor concerns

NEXO risks 50% drop due to regulatory pressure and investor concerns

September 30, 2022
51% of Ethereum blocks are now compliant with OFAC standards, raising censorship concerns

51% of Ethereum blocks are now compliant with OFAC standards, raising censorship concerns

October 14, 2022
All aboard! Elon Musk’s Vegas Loop now taking Dogecoin payments

All aboard! Elon Musk’s Vegas Loop now taking Dogecoin payments

July 7, 2022
Zero-knowledge KYC could solve the privacy vs compliance conundrum: VC partner

Zero-knowledge KYC could solve the privacy vs compliance conundrum: VC partner

October 11, 2022
All aboard! Elon Musk’s Vegas Loop now taking Dogecoin payments

All aboard! Elon Musk’s Vegas Loop now taking Dogecoin payments

0
Crypto owners banned from working on US Government crypto policies

Crypto owners banned from working on US Government crypto policies

0
Korean startup Uprise lost $20M shorting LUNC

Korean startup Uprise lost $20M shorting LUNC

0
Ethereum testnet Merge mostly successful — ‘Hiccups will not delay the Merge.’

Ethereum testnet Merge mostly successful — ‘Hiccups will not delay the Merge.’

0
OpenAI CEO highlights South Korean chips sector for AI growth, investment

OpenAI CEO highlights South Korean chips sector for AI growth, investment

June 10, 2023
Nigeria to tax crypto, digital assets 10% on capital gains: Experts react

Nigeria to tax crypto, digital assets 10% on capital gains: Experts react

June 10, 2023
Ooki DAO to shut down after ‘precedent setting’ court battle with CFTC

Ooki DAO to shut down after ‘precedent setting’ court battle with CFTC

June 10, 2023
Scammers steal nearly $1M after hijacking 8+ prominent crypto twitter accounts

Scammers steal nearly $1M after hijacking 8+ prominent crypto twitter accounts

June 10, 2023

XBT.Market

This website is an automated news feed powered by the Nebulome cloud system. The site is made possible by YYC TECH Consulting and Alberta Digital Mining Company. As a team with major crypto and bitcoin enthusiasm, we have curated major sources of news, trading and financial data to bring you, our viewer, an unbiased source of truth.

Recent Posts

  • OpenAI CEO highlights South Korean chips sector for AI growth, investment June 10, 2023
  • Nigeria to tax crypto, digital assets 10% on capital gains: Experts react June 10, 2023
  • Ooki DAO to shut down after ‘precedent setting’ court battle with CFTC June 10, 2023
  • Scammers steal nearly $1M after hijacking 8+ prominent crypto twitter accounts June 10, 2023
  • SEC charges against Binance and Coinbase are terrible for DeFi June 10, 2023

News Categories

  • Bitcoin
  • Blockchain
  • Business
  • Market

Tags

bitcoinMagzine Cointelegraph Cryptocurrency insidebitcoins Investment Mining Bitcoin NewsBTC

Quicklinks

  • Home
  • Coins MarketCap
  • Crypto Exchanges
  • Crypto Calculator
  • Top Gainers and Loser
  • News
  • Contact Us

© 2022 Xbt.Market - Powered by YYC Tech Consulting & ADMCO.

No Result
View All Result
  • Home
  • Coins MarketCap
  • Crypto Exchanges
  • Crypto Calculator
  • Top Gainers and Loser
  • News
  • Contact Us

© 2022 Xbt.Market by Nebulome.

  • bitcoinBitcoin(BTC)$25,719.00-3.41%
  • ethereumEthereum(ETH)$1,746.05-5.32%
  • USDEXUSDEX(USDEX)$1.07-0.53%
  • tetherTether(USDT)$1.00-0.21%
  • binancecoinBNB(BNB)$238.67-8.42%
  • usd-coinUSD Coin(USDC)$1.00-0.08%
  • rippleXRP(XRP)$0.496708-6.25%
  • staked-etherLido Staked Ether(STETH)$1,744.80-5.26%
  • cardanoCardano(ADA)$0.249112-21.64%
  • dogecoinDogecoin(DOGE)$0.059907-12.07%
  • tronTRON(TRX)$0.067902-13.04%
  • solanaSolana(SOL)$14.85-22.87%
  • litecoinLitecoin(LTC)$77.23-12.68%
  • polkadotPolkadot(DOT)$4.47-10.90%
  • matic-networkPolygon(MATIC)$0.58-25.80%
  • binance-usdBinance USD(BUSD)$1.000.03%
  • daiDai(DAI)$1.00-0.04%
  • wrapped-bitcoinWrapped Bitcoin(WBTC)$25,732.00-3.45%
  • avalanche-2Avalanche(AVAX)$11.59-16.71%
  • shiba-inuShiba Inu(SHIB)$0.000007-17.27%
  • leo-tokenLEO Token(LEO)$3.510.14%
  • uniswapUniswap(UNI)$3.99-13.62%
  • chainlinkChainlink(LINK)$5.04-16.09%
  • Aerarium FiAerarium Fi(AERA)$7.14-13.11%
  • okbOKB(OKB)$41.52-7.69%
  • moneroMonero(XMR)$136.49-4.60%
  • cosmosCosmos Hub(ATOM)$7.92-15.28%
  • ToncoinToncoin(TON)$1.49-12.53%
  • stellarStellar(XLM)$0.081334-6.73%
  • ethereum-classicEthereum Classic(ETC)$14.56-14.52%
  • true-usdTrueUSD(TUSD)$1.00-0.12%
  • bitcoin-cashBitcoin Cash(BCH)$100.98-9.11%
  • internet-computerInternet Computer(ICP)$3.80-10.14%
  • lido-daoLido DAO(LDO)$1.84-17.34%
  • quant-networkQuant(QNT)$103.74-5.12%
  • GGTKNGGTKN(GGTKN)$0.1121180.75%
  • filecoinFilecoin(FIL)$3.36-17.93%
  • hedera-hashgraphHedera(HBAR)$0.044329-9.25%
  • crypto-com-chainCronos(CRO)$0.051511-11.91%
  • ArbitrumArbitrum(ARB)$1.02-10.74%
  • AptosAptos(APT)$5.99-22.39%
  • nearNEAR Protocol(NEAR)$1.21-14.75%
  • vechainVeChain(VET)$0.015065-13.30%
  • paxos-standardPax Dollar(USDP)$1.00-0.15%
  • fraxFrax(FRAX)$1.00-0.05%
  • EdgecoinEdgecoin(EDGT)$1.00-0.03%
  • BSCEXBSCEX(BSCX)$238.2167.26%
  • the-graphThe Graph(GRT)$0.096014-14.63%
  • rocket-poolRocket Pool(RPL)$44.38-6.46%
  • apecoinApeCoin(APE)$2.34-19.06%
  • Rocket Pool ETHRocket Pool ETH(RETH)$1,876.20-5.39%
  • algorandAlgorand(ALGO)$0.108621-13.30%
  • elrond-erd-2MultiversX(EGLD)$30.36-13.11%
  • aaveAave(AAVE)$52.66-12.50%
  • render-tokenRender(RNDR)$2.06-12.43%
  • eosEOS(EOS)$0.68-24.10%
  • usddUSDD(USDD)$1.00-0.11%
  • blockstackStacks(STX)$0.52-18.58%
  • the-sandboxThe Sandbox(SAND)$0.379697-21.73%
  • optimismOptimism(OP)$1.09-21.42%
  • WhiteBIT TokenWhiteBIT Token(WBT)$4.74-1.49%
  • tezosTezos(XTZ)$0.72-13.93%
  • Bitget TokenBitget Token(BGB)$0.477890-3.80%
  • fantomFantom(FTM)$0.238193-19.04%
  • theta-tokenTheta Network(THETA)$0.64-15.66%
  • BitDAOBitDAO(BIT)$0.440153-8.30%
  • radixRadix(XRD)$0.061390-9.08%
  • CloutContractsCloutContracts(CCS)$52.461,000.00%
  • decentralandDecentraland(MANA)$0.338191-19.68%
  • kucoin-sharesKuCoin(KCS)$6.31-6.43%
  • immutable-xImmutableX(IMX)$0.61-17.20%
  • axie-infinityAxie Infinity(AXS)$4.95-20.36%
  • gemini-dollarGemini Dollar(GUSD)$1.00-0.24%
  • havvenSynthetix Network(SNX)$1.79-13.43%
  • curve-dao-tokenCurve DAO(CRV)$0.64-15.65%
  • makerMaker(MKR)$595.79-5.37%
  • gatechain-tokenGate(GT)$3.85-6.43%
  • neoNEO(NEO)$7.47-18.39%
  • flowFlow(FLOW)$0.50-19.83%
  • marumaruNFTmarumaruNFT(MARU)$0.24991121.40%
  • terra-lunaTerra Luna Classic(LUNC)$0.000086-11.97%
  • bittorrentBitTorrent(BTT)$0.000001-1.09%
  • galaGALA(GALA)$0.020724-19.97%
  • pax-goldPAX Gold(PAXG)$1,907.65-1.35%
  • tether-goldTether Gold(XAUT)$1,959.50-0.21%
  • xdce-crowd-saleXDC Network(XDC)$0.034667-2.69%
  • bitcoin-cash-svBitcoin SV(BSV)$24.79-18.14%
  • injective-protocolInjective(INJ)$5.92-15.79%
  • binaryxBinaryX(BNX)$165.90-5.97%
  • Tokenize XchangeTokenize Xchange(TKX)$5.74-6.78%
  • casper-networkCasper Network(CSPR)$0.041395-5.88%
  • compound-ethercETH(CETH)$35.03-5.47%
  • klay-tokenKlaytn(KLAY)$0.146412-11.48%
  • kavaKava(KAVA)$0.80-16.30%
  • Halo CoinHalo Coin(HALO)$0.057345-0.05%
  • huobi-tokenHuobi(HT)$2.66-6.92%
  • iotaIOTA(MIOTA)$0.153232-14.33%
  • ShardusShardus(ULT)$0.95220.84%
  • compound-usd-coincUSDC(CUSDC)$0.022881-0.03%
  • gmxGMX(GMX)$45.12-12.68%