- This topic has 1 reply, 1 voice, and was last updated 1 week, 2 days ago by crushfield.
- Monday, November 21st, 2022 at 18:51 #408144WicomzParticipant
Since the FTX collapse, Coinsquare has been having “Systems issues” and struggling to process withdrawals. Coinsquare claims that they hold assets 1:1 with client liability in cold storage, but their only way to prove it is by publishing their “reserve” on Nansen. However, this website doesn’t mean shit! How do we know Coinsquare actually owns the addresses that are there? We don’t know either how much they have in customer liabilities. Even if they happen to actually own the addresses on Nansen, they could still be running a fractional reserve.
I asked them today on Twitter why crypto withdrawals are down so often. Their response was: “We detected unusual activity on our platform and had to turn off some processes as a safety measure.” UNUSUAL ACTIVITY… ehhhhhh very sus
Coinsquare is being extremely insistent on Twitter and via their email communications that the outages impacting their system are not related to liquidity issues and that they are a IIROC member firm. That doesn’t mean shit also! FTX was also saying they had no liquidity issues, even though they were running a fractional reserve. Do you really think regulators are in the company’s books every day looking if they are fully backed? Absolutely not.
Their issues started exactly after the FTX collapse. FTX bankruptcy filings shows that they have an estimated 1 million creditors. You don’t think it’s possible that Coinsquare had some exposure for market making purposes? Is it just a coincidence? Maybe… but likely not. Everything is intertwined in the crypto world.
Why is Coinsquare insisting that customer assets are safe but are never recommending customers to take ownership of their own keys? Shakepay (one of their biggest Canadian competitor) tweeted a long thread about self-custody on Nov 16th and actually recommends that their customers withdraw their bitcoin to a hardware wallet. Why don’t Coinsquare do that?
If withdrawals ever come back on, I recommend to everyone to withdraw all your bitcoin. THEY ARE YOUR BITCOIN. YOU EARNED THEM. DON’T LET COINSQUARE FUCK IT ALL UP FOR YOU.Monday, November 21st, 2022 at 19:18 #408145crushfield
Self-custody or get robbed. That’s it.
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