Tech Tech News California Court Ruling Solidifies The Crypto Adage “Not Your Keys; Not Your...

California Court Ruling Solidifies The Crypto Adage “Not Your Keys; Not Your Coins” ⋆ ZyCrypto

Must View

35+ Best Google Slides Themes & Templates 2021

Google Slides is one of the best free instruments accessible for creating a fast slideshow presentation. And we’ve collected...

NASA will certainly pay for moon rocks dug deep into by personal business

NASA revealed today that it was looking for propositions from personal business thinking about gathering examples...

Prediction: Wolves vs Manchester City

Verdict: Wolves dual opportunity Best Odds: 6/4 Bookmaker: Opening up their Premier League project on Monday evening, Manchester City will...

Trump’s campaign knocks on a million doors a week. Biden’s knocks on zero.

Biden’s organizing program was gradual to ramp up after the first. Senior management for vital states like Florida and...
Web Content Creator, Web Designer, Graphics Manipulator, Security and SEO analyst, Freelancer, Digital Marketer, Promotional Video Maker.

California Court Ruling Solidifies The Crypto Adage “Not Your Keys; Not Your Coins”



The self-proclaimed “Bitcoin obsessive lawyer” Justin Winston Ono Wales takes the saying “Not your keys; not your coins” seriously. He used the recent ruling in the Archer v. Coinbase case to explain just how important the old crypto adage really is.

The Archer v. Coinbase case illustrates that if you do not control your own private keys, a number of things can go wrong that would lead to the loss of your funds. And what’s worse is that there is nothing that the law can do to help you recover the losses.

Coinbase user and plaintiff Darrell Archer sued Coinbase for refusing to provide him with Bitcoin Gold he believes he’s entitled to after a Bitcoin fork.

Justin Wales lays out his analysis and explains the pitfalls of not holding your own coins in a Twitter thread.

“‘Not Your Keys, Not Your Coins’ is officially case law thanks to a new California appellate court decision.”

Wales explains that the plaintiff expected to receive a large number of Bitcoin Gold but his own actions ultimately prevented him from ever controlling the new forked coins.

“As we know, BTC can be forked into new currencies for lots of reasons by damn near anyone. BCH, BSV, Bitcoin Gold are examples. As someone that holds Bitcoin you’re entitled to an equivalent number of forked coins. In other words, your Bitcoin includes the value of all its forks. But accessing your forked coins is only guaranteed if you hold your own private keys! If you let someone else custody your crypto it is up to their discretion whether to give you your forked assets.”

The plaintiff expected Coinbase to accept Bitcoin Gold on its platform and handle all of the logistics involved with the fork. But Bitcoin Gold was never included by Coinbase.

“Coinbase honored BCash, but not Gold. That’s what this case is about. Facts:

A person kept 350 BTC on Coinbase and wanted the equivalent Bitcoin Gold (valued at $159k at its height) but Coinbase said no. Dude sued claiming breach of contract, conversion, and negligence but the Court rejected all these arguments because it found that Coinbase had no obligation, contractual or otherwise, to support every fork of bitcoin.”

The Court ruled that Coinbase was not responsible for any of the ‘Bitcoin Gold’ the plaintiff was demanding because he had other reasonable options to hold his original coins.

“There is no requirement that investors keep their coins in exchanges; they can always withdraw the coins to their own private wallets.”

The case is a milestone in the blockchain industry because it provides precedent and solidifies the constantly repeated idea that a crypto custodian could cause you to lose it all and there is nothing that can be done about it. 

“In other words: “Not Your Keys, Not Your Coins” is now precedent in California and I  imagine will be highly instructive for other jurisdictions hearing similar claims.”

As Justin Wales puts it, “TL:DR: HODL your own damn coins!”

Get Daily Crypto News On Facebook | Twitter | Telegram | Instagram


The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.

Source link

Share this:


Please enter your comment!
Please enter your name here

Related Posts

Place Ads Here

Ads by Trend440

Trending Now

Travis Scott Earned Over $100 Million This Year

Travis Scott made bank in 2020. The Houston rapper is on track to bring in more than $100 million in earnings this year, a source...

BlackRock CEO Believes Bitcoin Could Become A Global Asset

Bitcoin may merely turn into a international asset. This is in accordance to Larry Fink, the head of the world’s largest asset manager BlackRock....

“A real one for life”

Nollywood actress and billionaire spouse, Regina Daniels has shown gratitude to her ex boyfriend, Somadina for being a “real one”. The mom of one took...


Your Next Web Project...

We are a team of professionals to help you setup your next Web Design/Development project. You dictate, we build.