Peter Brandt Again Takes On Coinbase Warns Users Of Their Bitcoins

Brandt has continued to be brash at Coinbase after the exchange said it will treat its customers as unsecured creditors.

Peter Brandt, a veteran futures trader, has once again taken a swipe at San Francisco-based cryptocurrency exchange Coinbase in his latest tweet.

According to Brandt, who has always spoken about developments in the cryptocurrency industry, Coinbase deserves to go bankrupt in the ongoing bear market.

Brandt Concerned About Coinbase Users

He noted that he is only concerned about Coinbase users, who still hold their crypto assets in the popular trading platform because they may be declared “unsecured creditors” in the event of a bankruptcy.

Brandt asserted that Coinbase going bankrupt works in the favor of the exchange, adding that the unfortunate development would present an opportunity for the Coinbase team to “steal users’ crypto assets.”

“The one that deserves to go bankrupt is @coinbase Unfortunately, their customers holding $BTC will then become unsecured creditors and will likely have their Bitcoins stolen,” Brandt said.

The one that deserves to go bankrupt is @coinbase Unfortunately, their customers holding $BTC will then become unsecured creditors and will likely have their Bitcoins stolen https://t.co/5nNkYJUv3M

— Peter Brandt (@PeterLBrandt) June 16, 2022

It is noteworthy that Brandt made the comment in response to a tweet made by a crypto enthusiast who goes by the username @TuurDemeester.

The Twitter user made a list of crypto-related companies that will come out stronger from the ongoing market crash.

Despite the fact Coinbase was not on the list, the veteran futures trader still found a way to make derogatory comments about the trading platform.

Crypto Crash Effects on Companies

Crypto-related companies have recorded a massive decline in profits following the cryptocurrency market crash, which was ushered in by rising inflation and Celsius Network issues.

The downward trend in the crypto market has prompted related companies to take stringent measures, including widespread layoffs.

Coinbase was not left out, as it earlier made a one-fifth reduction in its number of staff, with 260 employees affected laid off, which goes to show how badly the ongoing bear market has affected the company.

Meanwhile, Brandt’s derogatory comment comes a month after the futures trader warned Coinbase users that their “Bitcoin no longer belongs to them” after the trading platform declared in its first quarter financial report that:

“In the event of a bankruptcy, the crypto assets we hold in custody on behalf of our clients could be subject to bankruptcy proceedings. Such customers would be treated as our general unsecured creditors.”