Coinbase submits friend of the court statement, urging the court to protect customer assets in Prime Trust bankruptcy case

Odaily Planet Daily News: Coinbase has submitted an amicus curiae statement regarding the ongoing bankruptcy case of Prime Trust, urging the court to support legal protection for client assets held by custodians. Coinbase Chief Legal Officer Paul Grewal has released this document, emphasizing that customer assets should not be included in the trustee's bankruptcy proceedings. The company advocates for the implementation of Article 8 of the Uniform Commercial Code (UCC), which ensures that the assets held by the custodian belong to the client, rather than the custodian itself. Coinbase argues that both its user agreement and Prime Trust's user agreement explicitly state that assets still belong to customers' property. Bankruptcy should not alter these agreements or reclassify assets as part of the trustee's assets. Legal documents will prevent customer funds from being included in Prime Trust's bankruptcy estate. Coinbase insists that upholding Article 8 of the UCC is crucial for maintaining trust in custodians, whether in the field of digital finance or traditional finance. In other legal developments, the Operation Chokepoint 2.0 hearing has attracted the attention of the entire industry. Paul Grewal will testify alongside other key figures to refute unfair banking restrictions on cryptocurrencies.