# Coinbase Dispute Raises Broader Questions About Corporate Bitcoin Custody By John Kim Canonical URL: https://www.tokenpost.com/news/business/36310 Published: 2026-10-21T04:00:50.000Z Updated: 2026-10-21T04:00:50.000Z Section: Business > A 2025 survey found accounting and controls complexity was nearly as common a concern as price volatility among North American CFOs considering cryptocurrency. BlockTower Capital founder Ari Paul’s unresolved claim that Coinbase lost his firm’s funds raises broader questions for companies holding Bitcoin (BTC) about transfer approvals and evidence that assets are in custody. In a Sept. 28 post, Paul alleged that Coinbase lost about $25 million of BlockTower’s funds. He also accused the company of concealing losses exceeding $1 billion involving at least 12 other firms. Coinbase denied hiding a series of hacks or losing $1 billion. Its public response did not address BlockTower’s specific loss claim. TokenPost previously covered [Paul’s allegations and Coinbase’s response](). The dispute does not establish that a custody control failed. The broader governance questions—who can authorize a transfer and what evidence confirms assets are held—are separate from the unresolved claim. In a June 4–18, 2025, survey, 42% of 200 CFOs from North American companies with annual revenue of at least $1 billion named accounting and controls complexity among their concerns about cryptocurrency investment. Price volatility was cited by 43%. The survey covered cryptocurrency broadly, not Bitcoin custody alone. Coinbase Prime lets clients assign different roles to account users, configure approval requirements for transfers and withdrawals, and set a maximum withdrawal amount. Clients can also generate account reports and give auditors read-only access. A proof-of-reserves report provides a snapshot of assets at a point in time. By itself, it does not establish a custodian’s liabilities, customers’ rights to those assets or the effectiveness of internal controls. It also does not assure that the assets will remain available after the snapshot. The Morgan Stanley Bitcoin Trust began operating April 7, 2026, and its shares began trading April 8. At June 30, the trust held 5,059.30771216 BTC, valued at $299,012,624, with Coinbase Custody Trust Company, LLC, and BNY serving as its Bitcoin custodians. The named custodians and reported balance provide different information from the rules governing who may approve a transfer. On Oct. 1, the SEC proposed custody and recordkeeping changes for registered investment advisers and regulated funds. The changes remain a proposal and would not apply to every company holding Bitcoin in its treasury. ## Links in this article - [Paul’s allegations and Coinbase’s response](https://www.tokenpost.com/news/technology/25897)