Twitteratis urge Coinbase users to transfer crypto into hardware wallets

Pressure from RBI forced us to halt crypto trading in India: Coinbase CEO — Coinbase CEO Brian Armstrong

New Delhi: Coinbase warned that in the unlikely event of bankruptcy, it may absorb its users’ cryptocurrency as property.

Some cryptocurrency observers were alarmed by the acknowledgement because it appeared to contradict a core tenet of the decentralised finance movement: giving people complete control and ownership of their money.

CoinBase’s latest filing with SEC says "In the event of a bankruptcy, our customers could be treated as our general unsecured creditors."

In other words, when they eventually go bankrupt, they will use YOUR crypto to bail themselves out. pic.twitter.com/nwBtFFdXBc
— Mr. Whale (@WhaleWire) May 11, 2022

Now many users on Twitter and other social media platforms are urging Coinbase users to transfer their cryptocurrency to hardware wallets.

https://twitter.com/DU09BTC/status/1524253524279934977?s=20&t=p-1rtsjnPp1waumBifbH_w

PSA: Exchanges are not wallets. Do not leave your coins on an exchange for longer than the time needed for trading. Remember: Not your keys, not your bitcoins
— Electrum (@ElectrumWallet) May 12, 2022

What is a Hard Wallet?

A hardware wallet is a cryptocurrency wallet which stores the user’s private keys (critical piece of information used to authorise outgoing transactions on the blockchain network) in a secure hardware device.