Business News Asia
Coinbase Global Inc. the largest cryptocurrency trading platform in the U.S. announced yesterday that the company has no partner risk associated with Celsius, Three Arrows Capital and Voyager Digital, the two largest cryptocurrency lending platforms in the world that previously went bankrupt.
In addition, Coinbase states that the company has no financial risks related to the 3 companies.
However, Coinbase revealed that it has made a small investment in Terraform Labs, the Singapore-based company behind Terra’s collapse.
“Most of these companies have a lot of short-term debt that is inconsistent with long-term liquidity. And we have no connection with these risky lending behaviors. We pay attention to building a cautious financial business. And with the customer in mind,”Coinbase said in a statement.
The crypto market was in turmoil after the collapse of the Terra network, which led to Celsius, Three Arrows Capital, and Voyager Digital prohibiting their customers from withdrawing their cryptocurrencies or coins due to a severe lack of liquidity until they eventually had to file a petition with the court to request a receiver.