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

Odaily News Coinbase has filed an amicus brief in Prime Trust’s ongoing bankruptcy case, urging the court to uphold legal protections for customer assets held by the custodian. Coinbase Chief Legal Officer Paul Grewal released the filing, stressing that customer assets should not be included in the custodian’s bankruptcy proceedings.
The company advocated for the enforcement of Section 8 of the Uniform Commercial Code (UCC), which ensures that assets held by a custodian belong to the customer, not the custodian itself. Coinbase argued that both its user agreement and Prime Trust’s user agreement clearly state that assets remain part of the customer’s property. Bankruptcy should not change these agreements or reclassify assets as part of the custodian’s property.
The legal filing will prevent customer funds from being included in Prime Trust’s bankruptcy estate. Coinbase insists that upholding UCC Article 8 is critical to maintaining trust in custodians, both in digital and traditional finance.
In other legal developments, the Operation Chokepoint 2.0 hearings have captured the attention of the entire industry. Paul Grewal will testify alongside other key figures to refute unfair banking restrictions on cryptocurrencies.