That's not actually true, back in the day Coinbase used Bitfinex. They were using them when Bitfinex got all that BTC stolen. Technically everyone, including Coinbase, lost assets in that hack. They were large and scary enough at the time to force Bitfinex to keep them whole instead of applying the 36% haircut, but I'd argue that amounts to recovery rather than failure to lose in the first place. [1, 2]

[1] https://www.kalzumeus.com/2019/10/28/tether-and-bitfinex

[2] https://x.com/nathanielpopper/status/933130228175552513

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bhawks 9 hours ago | parent [-]

That's a pretty big stretch of definitions. Whatever operations Coinbase had with Bitfinex were either to support market making activity or as a service for Coinbase's institutional customers to directly access bitfinex via their platform.

As I said, they have never lost customer funds in their custody.

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arcticbull 9 hours ago | parent [-]

> Whatever operations Coinbase had with Bitfinex were either to support market making activity or as a service for Coinbase's institutional customers to directly access bitfinex via their platform.

How do you know?

	▲	bhawks 2 hours ago \| parent [-]
		Coinbase didn't halt trading or withdrawals during the Bitfinex hack. Somehow I think Nathaniel Popper would have been able to put that fact directly in his NYT article instead of a throw away tweet if there was a material impact. Heck he wasted a paragraph quoting one of Coinbase's board of directors on the risks of unregulated exchanges like bitfinex versus Coinbase.