The ApeCoin DAO Says That It Holds Its Treasury In Segregated Custody Accounts Via Coinbase Custody
As the crypto community at large deals with the FTX fallout, the ApeCoin DAO took to Twitter and said that none of the DAO’s assets were on the now bankrupt exchange.
On Monday in a five-part Twitter thread, the ApeCoin DAO informed the community that none of the DAO’s treasury was on FTX and that the DAO keeps its treasury in “segregated custody accounts via Coinbase Custody.”
In segregated custody, the entity securing the assets has no management authority of the assets,” the DAO tweeted. “In a liquidation event, the assets are fully returned to the client.”
The ApeCoin DAO went on to say that segregated custody accounts are standard practice on the institutional level because they provide clients with extra security .
“This is standard practice when operating at an institutional level, but more importantly serves to reduce significant key man risk, particularly when a large treasury is involved,” the DAO tweeted. “Publicly known individual key holders to a self-custodied wallet holding a large treasury face the very real possibility of being subject to personal security risks and even themselves can be manipulated through complex socially engineered attacks.”
The ApeCoin DAO ended its thread by telling the community a bit more about Coinbase custody and providing a link to Coinbase Prime’s website.
“Coinbase Custody operates as a standalone, independently capitalized business to Coinbase Inc,” the DAO said. “Coinbase Custody is a fiduciary under NY State Banking Law. All digital assets are segregated and held in trust.”