I'm considering putting some of my bitcoin in Coinbase Vault due to the multisig option. I can't seem to find a detailed answer on how much control Coinbase has over the users vault in the events of a Bankruptcy or internal Coinbase actions to try to take control over said wallet.
For example, if I select two multisig users (myself and someone else I trust), Coinbase automatically becomes the 3rd multisig. As such, my understanding is withdrawal requires 2 of the 3 multisigs.
Therefore, if Coinbase ever has an issue such as suprise account withdrawal locks/Bankruptcy (like Blockfi), or if they end up selling more bitcoin on the exchange than they have in reserves, in both situations, my coins would be safe as long as both of my multisigs don't give access?
Or is the bitcoin in my Vault really just paper bitcoin that is still technically just on coinbases ledger as owing to me?
No comments:
Post a Comment