Coinbase has filed an amicus curiae brief in the ongoing bankruptcy of Prime Trust, urging the court to uphold the legal protection of client assets held by custodians. Paul Grewal, Coinbase's chief legal officer, released the document, stressing that client assets should not be included in the bankruptcy proceedings of custodians.
The company argued for the enforcement of Article 8 of the Uniform Commercial Code (UCC), which ensures that assets held by a custodian belong to the customer and not to the custodian itself. Coinbase argued that both its user agreement and Prime Trust's user agreement clearly state that assets remain the property of the customer. Bankruptcy should not alter those agreements or reclassify assets as part of the custodian's property.
Legal filings will prevent customer funds from being included in Prime Trust's bankruptcy estate. Coinbase maintains that upholding Article 8 of the UCC is essential to maintaining trust in custodians, whether in digital or traditional finance.
In other legal developments, the Operation Chokepoint 2.0 hearing has drawn the attention of the entire industry. Paul Grewal will testify alongside other point persons to refute unfair banking restrictions on cryptocurrencies.
Coinbase has filed an amicus curiae brief in the Prime Trust bankruptcy case, urging the court to uphold a lawsuit against custodian client assets
2025-02-06 00:06:17
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