Do you know if your money is safe?
You probably know about what happened to Celsius and its users not so long ago and every crypto user now fears losing their assets in case of bankruptcy. Our team has contacted multiple crypto platforms, both CEX and DEX, and found out what will happen to your money in case the platform goes bankrupt. Keep
If you don’t know or are new to the crypto industry, here are some thoughts on Celsius’s crash. Celsius was one of the biggest players in the crypto industry. With a market cap of over 5.5 billion US dollars, Celsius has gone bankrupt and is currently facing multiple allegations. The most interesting thing about them is the fact that multiple lawsuits state that the company ran a Ponzi scheme.
A company going bankrupt is very awful. However, there are different tactics and policies that insure your invested money or even the cash you keep in the company. Here is a list of all the answers, categorised by their usefulness and positiveness. Make sure you know where you trade before investing tons of money into it!
Negative or Uninformative Answers
Altough we really just gave a simple question, some trading platforms weren’t as open as others. Here are some answers that didn’t provide any information regarding this topic or, on the contrary, provided some negative information that definitely needs to be seen by all crypto traders.
Coinbase
Unfortunately, Coinbase is one of the many trading platforms that hasn’t fully answered our question. They have given us irrelevant information on how they have set up a team that helps their trustees in case of bankruptcy. No information on their plans in case their publicly traded company is going bankrupt. That’s a shame!
KuCoin
This type of answer is the most interesting one. KuCoin just assured us that their platform is working fine and they don’t have any signs of bankruptcy we have to worry about. However, we think that this response indicates the fact that they don’t really have a plan for their bankruptcy.
Huobi
Nothing other than assuring their platform is safe and is running as usual we haven’t heard from Huobi. They talked about their inexistent liquidity crisis and other things, just not about what they will do in case of their bankruptcy. We can just speculate that they either don’t have a plan for that situation or the plan doesn’t involve giving your money and assets back.
Gate.io
Gate.io has assured us that their company is operating stably and doesn’t have any financial issues. Plus, they will protect their users’ assets as usual. However, we haven’t received any additional information on how they plan to do that and what will the compensation be in case of failure. We just got to trust them!
MEXC
MEXC, using the same tactics as KuCoin, has assured us that their trading platform is doing alright and we have nothing to worry about. However, by giving us a link to their terms and condition page, they gave us a hint.
They don’t have a single paragraph that would indicate some actions in case of their bankruptcy. There is no documentation on this matter. Thus, we don’t have any information on where or how will your funds and assets be held in case of their bankruptcy.
Bittrex
Bittrex has assured us that their biggest priority is their customer’s assets’ safety. However, we have received no additional information on how they plan to ensure that safety and what will the situation be in case of their bankruptcy.
Bitfinex
Bitfinex, in their email, has confirmed the fact that your funds are used by the company for their own benefit and investments. However, they are not to be held responsible in case of any financial crisis, including bankruptcy, information leakage and other types of cyber-attacks.
We really think that their bankruptcy policy should be reviewed.
bitFlyer
bitFlyer just told us that, in case of their bankruptcy, they will treat their customers’ assets according to the law. Although it is an uninformative response because not every person is proficient in terms of laws, their tactics are crystal clear. They will do just the bare minimum to not face legal allegations and multiple lawsuits, that’s all.
Wirex
Wirex does hold their assets within Fireblocks, a custodian with up to $30m assets insurance. However, due to their enormous site and quantity of assets held there, we think that $30m is not a big enough insurance pocket for their customers. We can only speculate on this matter but, with just a $30m insurance pool, you’ll get something around 10 cents on a dollar in case of their bankruptcy.
Poloneix
Poloneix has also given us an uninformative answer. Other than assuring us that their company works well enough, we haven’t received any information. However, they did say that, when such a financial crisis is to be faced, they will find a solution. We do hope that they will! Nevertheless, they should have a more detailed plan for that time.
1inch
1inch doesn’t have any information regarding this topic in their Terms and Condition. In addition to that, they didn’t answer our emails and, thus, we don’t have any information to share on their behalf. However, we can speculate that, due to the fact that we haven’t heard from them, there is no information at all about their plan in case of bankruptcy. Therefore, 1inch isn’t the safest trading platform to use.
Pancakeswap
Pancakeswap, their Terms and Conditions, affirms that the site isn’t to be held responsible for all types of losses that a client has ever had. Thus, you aren’t insured and won’t be able to get your money back after a supposed bankruptcy. That being said, we think that Pancakeswap isn’t the safest trading platform out there.