Coinbase, the largest US-based exchange regarding trading volume metrics, is popular as one of crypto’s secure and trusted gateways. Users see it as a blue-chip exchange set apart from the chaos of offshore rivals. However, lawsuits surrounding its recent insider data breach suggest something more unsettling, revealing a finance model where the institution absorbs little liability and the user carries almost all of the risk. Coinbase’s Finance Model That Shifts Risk to Users At a traditional bank, deposits are protected by regulation, insurance, and reimbursement guarantees
source: https://beincrypto.com/coinbase-financial-model-users-carry-risk/