Coinbase carries crime insurance that protects a portion of digital assets held across our storage systems against losses from theft, including cybersecurity breaches.  However, our policy does not cover any losses resulting from unauthorized access to your personal Coinbase or Coinbase Pro account(s) due to a breach or loss of your credentials. It is your responsibility to use a strong password and maintain control of all login credentials you use to access Coinbase and Coinbase Pro. Digital currency is not legal tender and is not backed by the government. Coinbase is not an FDIC-insured bank and digital currency is not insured or guaranteed by the Federal Deposit Insurance Corporation (“FDIC”) or Securities Investor Protection Corporation (“SIPC”), and may lose value. In case of a covered security event, we will endeavor to make you whole; however, total losses may exceed insurance recoveries so funds may still be at risk.

Cash balances customers store with Coinbase are held as a balance in your Coinbase account(s). For U.S. customers, Coinbase combines your balance with the balances of other customers (plus some cash we contribute for operational reasons) and holds those funds in custodial accounts at U.S. financial institutions and/or invests those funds in liquid U.S. Treasuries, USD denominated money market funds, or other permissible investments  in accordance with state money transmitter laws. Funds could be held in any one of these manners so customers should not assume that funds are being held in one manner over the other. For non-U.S. customers, funds are held as cash in dedicated custodial accounts separate from Coinbase funds. For all customers,Coinbase will neither use these funds for its operating expenses or any other corporate purposes. To the extent U.S. customer U.S. Dollar funds are held as cash, they are maintained in pooled custodial accounts at one or more FDIC-insured banks or or NCUSIF-insured credit unions. Our custodial accounts have been established in a manner to allow Coinbase to make a claim against pass-through FDIC or NCUSIF insurance for each customer up to the per-depositor coverage limit then in place (currently $250,000 per individual). Pass-through insurance may be available to protect funds held on behalf of a Coinbase customer against the risk of loss should any insured financial institution(s) where we maintain custodial accounts fail. Pass-through coverage is contingent upon Coinbase maintaining accurate records and on determinations of the relevant federal regulator as receiver at the time of a receivership of a bank holding a custodial account. Below is a list of the insured depository institutions at which Coinbase may deposit customer U.S. Dollar funds:

• JPMorgan Chase

• Cross River Bank

• Customers Bank

• VyStar Credit Union (Retail customer funds only)

• Pathward (previously known as MetaBank)

[as of October, 2024] Find out more  about FDIC deposit insurance in the FDIC’s fact sheet, here. Find out more about the National Credit Union Share Insurance Fund here.

In the last few years, it has become increasingly common for tech companies to censor customers or close their accounts for a range of reasons (e.g., misinformation). Luckily, as a crypto business we don’t face this issue as frequently as a social network does, but we still need to set clear policies around acceptable use of our products. You can read our Prohibited and Conditional Use Policy here.