Coinbase May Add Customer’s Ethereum Stake To Blacklist If Necessary

The blacklist function in the Coinbase Wrapped Staked ETH (cbETH) smart contract has sparked criticism from some in the crypto community.

As observed in the smart contract, the Coinbase Wrapped Staked ETH (cbETH) features a blacklist function. This enables Coinbase to selectively block addresses if necessary.

If the exchange believes the wallet has violated its user agreement, it can blacklist addresses and freeze customer assets if it believes there has been a violation or if the law mandates it.

Coinbase is not the only cryptocurrency firm that blacklists addresses. Circle has also seized funds associated with the mixing service Tornado Cash. The corporation froze 75,000 USDC belonging to customers of the Ethereum mixer.

Some Bitcoin holders are irritated by the move, believing that it sets a terrible precedent. Meanwhile, Coinbase has been committed to following the law and complying with any orders issued by regulators.

Some in the crypto community pointed to previous comments made by Coinbase CEO Brian Armstrong when they criticized censorship. In August 2022, Armstrong said that they would likely shut down the staking service instead of censorship if regulators required censorship. This raised concerns among customers staking Ether on the exchange.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Harold

CoinCu News