Odaily News Coinbase Chief Legal Officer Paul Grewal has responded to recent FUD surrounding the user terms of service for Coinbase’s new “Bitcoin wrapper” product, cbBTC, by confirming that Coinbase will fully reimburse customers if the exchange loses the underlying Bitcoin. Previously, it was pointed out that there was a worrying clause in the cbBTC user agreement that stated that if Bitcoin was lost due to malicious activity or unforeseen events, Coinbase would not reimburse customers in full, but would instead distribute it to customers in proportion to the remaining Bitcoin. Grewal confirmed in the statement that the policy limits the exchange’s liability for external losses arising from complex trades and leveraged positions that customers may enter. For example, if a trader used cbBTC as collateral on a lending platform and was liquidated due to malicious activity resulting in the loss of the underlying Bitcoin, Coinbase would fully reimburse the lost Bitcoin, but would not compensate for any fees or funds lost due to the loan liquidation itself. (Cointelegraph)