Expert Warning: Protect Your Bitcoin Amidst Impending Insolvency of Crypto Custody Firm  - COINTURK NEWS
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Expert Warning: Protect Your Bitcoin Amidst Impending Insolvency of Crypto Custody Firm 

In Brief

  • The crypto sector faces upheaval following lawsuits against Binance and Coinbase. 

  • A decision to freeze assets on Binance US is causing investor concern. 

  • Renowned analyst David Bailey warns of an imminent insolvency from a major crypto custody service provider. 
9:30 pm (115 days ago)
June 8, 2023

The cryptocurrency sector is in shock after lawsuits were brought against crypto exchanges Binance and Coinbase. Additionally, a decision to freeze assets related to Binance US has raised concerns among investors about protecting their funds. On this exact issue, renowned expert David Bailey has issued a warning to cryptocurrency investors. 

Withdraw Your BTC Funds

David Bailey, a widely followed journalist and analyst in the cryptocurrency sector, issued a stark warning. Bailey claimed that a major cryptocurrency custody service provider, which he did not name, would soon declare bankruptcy. Bailey stated that this bankruptcy would be announced at the last minute, with no chance of rescue, and warned investors as follows: 

A large custody service provider will declare last-minute bankruptcy, with no chance of rescue. Withdraw your Bitcoins from exchanges and even platforms that only support BTC.

This comment by Bailey was immediately responded to by the Swan Bitcoin team, which only supports BTC. The US-based platform stated that their BTC and USD assets were held by the Fortress team, and they also trusted BitGo as a physical custody service. Despite this, the Swan Bitcoin team emphasized that investors should still store their own assets. 

Known BTC Custody Companies

So, which companies are currently the most well-known custody service providers in the cryptocurrency sector? Examples of these companies include BitGo, Venly, Cobo Custody, Orbitos, Gemini Custody, Casa, CheckSig, Cybavo, Fidelity Digital Assets, Matrixport, Tangany, Custonomy, Copper, itBit, Fireblocks, Anchorage, Bitcoin Suisse, Taurus, Genesis, Coinbase Custody, and Ledger Vault, all established since 2013. It is known that particularly the US-based ones among these are subject to strict regulations. Offshore custody service providers may attract attention in this regard. 

The leading cryptocurrency, Bitcoin, could experience significant price movement in such a situation, and the forced BTC sales pressure in case of bankruptcy could negatively affect the price. Still, it should be remembered that this is only a claim and has not yet been clarified. The cryptocurrency sector is certainly pregnant with every possibility at any moment, and investors must be prepared for this. 

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