Coinbase Files Amicus Brief in Prime Trust Bankruptcy Case to Protect Customer Assets

Coinbase, led by Chief Legal Officer Paul Grewal, has filed an amicus brief in the ongoing Prime Trust bankruptcy case.

Coinbase filed an amicus brief in the ongoing Prime Trust bankruptcy case on March 8. The company’s intervention aims to highlight the critical principle enshrined in UCC Article 8, ensuring that customer assets held by custodians remain the customers’ property, even in bankruptcy proceedings. This legal principle underpins trillions of dollars in financial activity.

Coinbase’s brief argues that the article’s absence would allow custodians to seize customer assets, eroding confidence in both traditional and digital financial markets. The determination motion filed in relation to Prime Trust’s Administrator Plan has raised concerns about undermining this legislation.

If granted, such a ruling will set a precedent with a broad impact beyond the crypto sphere. Coinbase emphasizes the need for both the financial community and the public to fully grasp the implications of any changes to Article 8 protections, which could affect custodial arrangements in markets far larger than crypto.