“The issues here were foreseeable and actually credit specific, not crypto specific in nature,” said three department heads at Coinbase.
Department heads at Coinbase have weighed in on the market downturn amid solvency concerns around Three Arrows Capital, crypto lending firm Celsius, and Voyager Digital, saying the crypto exchange had “no financing exposure” to the companies.In a Wednesday blog post, Head of Coinbase Institutional Brett Tejpaul, Head of Prime Finance Matt Boyd, and Head of Credit and Market Risk Caroline Tarnok said Coinbase had not engaged in the “types of risky lending practices” exhibited by Three Arrows Capital, Celsius, and Voyager, claiming the firms were examples of practicing “insufficient risk controls.” According to the trio, crypto companies faced the possibility of insolvency caused by “unhedged bets,” large investments in Terra, and overleveraging with venture capital firms.“The issues here were foreseeable and actually credit specific, not crypto specific in nature,” said Tejpaul, Boyd, and Tarnok.
