TechFlow news — On September 23, according to Cointelegraph, Coinbase Chief Legal Officer Paul Grewal responded to concerns arising from the terms of service for the company's newly launched wrapped Bitcoin product, cbBTC. Grewal clearly stated that in the event of loss of the underlying Bitcoin, Coinbase will fully reimburse customers.
Previously, users pointed out controversial clauses in the cbBTC user agreement, claiming that if Bitcoin is lost due to malicious activities or unforeseen events, Coinbase would compensate only proportionally based on remaining Bitcoin, rather than providing full reimbursement. Grewal clarified that this policy is intended to limit the exchange’s liability for external losses stemming from complex customer transactions and leveraged positions. He illustrated with an example: if a trader uses cbBTC as loan collateral and faces liquidation due to the loss of the underlying Bitcoin, Coinbase will fully reimburse the lost Bitcoin but will not cover fees or other losses incurred from the liquidation.
