Do you need any more reasons to move your money out of CEXs?

This is being said ever since crypto was born, but after the last couple of days you’ve really seen why.

\- Couple of days ago, Coinbase revealed their huge losses in revenue and profits and disclosed that, and I quote: “Because custodially held crypto assets may be considered to be the property of a bankruptcy estate, in the event of a bankruptcy, the crypto assets we hold in custody on behalf of our customers could be subject to bankruptcy proceedings and such customers could be treated as our general unsecured creditors”, which translates to : **”If we go bankrupt you get fucked and we keep your crypto”.**

\- After the huge crypto dip, CEXs all over (Kucoin, Binance, Coinbase) closed down temporarily the withdraws and deposits for “unknown reasons”.

\- After the TERRA problem, people started trading it on CryptoCom and now, 1 day later, CryptoCom started reversing trades (YES, REVERSING THEM) and people lost a lot of money, [check this post]( and the comments.

They can wake up tomorrow and freeze your funds. If crypto goes down 50% more they can literally stop you from withdrawing anything. If they go bankrupt, you go with them.

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11 thoughts on “Do you need any more reasons to move your money out of CEXs?”

  1. Fully agree and have been using cold storage from the start. I will say Coinbase is unfairly being thrown into the spotlight since they are the only publicly traded exchange. The CEO did clarify that their user agreements protect against it, however a US crypto exchange has never gone under so this policy hasn’t been fully tested or upheld by a judge. Coinbase is not telling people their fucked, simply warning that despite Coinbase actively looking out for users a judge could be an asshole and try ignoring it.

    Edit: [here](https://mobile.twitter.com/brian_armstrong/status/1524233480040710144) is the CEO’s clarification. People still should be using cold storage regardless but it’s getting wildly sensationalized against Coinbase specifically.

    The sad thing is the SEC or other regulators could clear this up by passing a single bill or statute codifying this. But that would involve actually protecting investors, so they would rather leave it a grey area and let random judges hammer it out down the line

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  2. Your local government contacts rbe CEX and asks them to freeze your crypto Because Reasons and they’ll likely comply without question or giving you any recourse.

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  3. After trying so many exchange the only one I trust and feel safe to leave my crypto in for a short period of time is Kraken. I still have otger on my phone like CB for learn and earn or CDC for their BS diamonds but otherwise all my transaction or straight on Kraken and USD only no stable coin if I dont have to ! If i have to use a stable coin then USDC.

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  4. In 1 hr my eth in crypto.com 3mth earn will be released and going straight to the safety of my own wallet.

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  5. Final gold warning! Crypto has been designed from scratch to be accepted by merchants DIRECTLY!!!

    What the fuck you ever keep Crypto at CEXes!!!

    Open your eyes, people!!!

    Stop speculations! Create a real business and accept Crypto directly!!!

    When all the merchants will accept crypto, it becomes as STABLE as fiat !!!

    Reply

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